China’s retail sales fell for the first time in more than three years in May, while urban investment contracted more than expected, signaling further weakness in the world’s second-largest economy.
Retail sales, a key gauge of consumption, dropped 0.6% year-on-year in May, the first decline since December 2022, according to data from the National Bureau of Statistics.
The figure came below market expectations for flat growth, as the Labor Day holiday failed to offset weak consumer demand.
Urban fixed-asset investment, including real estate and infrastructure, fell 4.1% in the January-May period from a year earlier, deepening from a 1.6% decline in the first four months.
Real estate investment remained a major drag, falling 16.2% in the first five months of the year. Manufacturing fixed-asset investment also contracted for the first time since December 2020, despite resilience in high-tech and policy-supported sectors.
Infrastructure investment rose 0.6% year-on-year during the same period.
Industrial production was the main bright spot, rising 4.5% in May from a year earlier, above expectations and recovering from April’s near three-year low of 4.1%.
The statistics bureau said the domestic imbalance between strong supply and weak demand remained “acute,” adding that some companies were under considerable operational pressure.
China’s unemployment rate eased to 5.1% in May from 5.2% in April. The latest figures add pressure on Beijing to introduce further policy support to stabilise consumption and investment, as the economy loses momentum after a stronger first quarter.
The easing of Middle East tensions and the reopening of the Strait of Hormuz may offer some relief by reducing energy shock risks, but analysts warn that weak domestic demand continues to weigh on China’s recovery.
China’s exports remained resilient in April and May, supported by renewables and AI-related demand, while higher commodity costs helped ease deflationary pressure.
However, consumer inflation remained modest, suggesting firms are absorbing higher input costs rather than passing them on to households amid weak pricing power.
Russian strikes on Ukraine overnight killed at least two people and injured 15 others, including two children, Ukrainian authorities said.&nbs...
Saudi Aramco has ordered staff to evacuate its headquarters amid escalating Houthi attacks on the kingdom. Two people were killed in an attack on D...
Nigeria's first Ebola case in more than a decade may be linked to travel in Uganda, Swiss authorities said on Thursday, although the source of ...
Russia is willing in principle to resume peace talks with Ukraine and the United States in November, Kremlin aide Yuri Ushakov said after President Vladimir Putin met U.S. special envoy Steve Witkoff in St Petersburg.
Saudi Aramco has ordered staff to evacuate its headquarters amid escalating Houthi attacks on the kingdom. Two people were killed in an attack on Dammam airport, while Iran's IRGC Navy claimed strikes on seven vessels and warned the U.S. of a wider response.
Yemen's Houthis have denied targeting the holy city of Medina on Wednesday adding that they have not conducted any military operations towards Saudi Arabia either, denying earlier comments from the Saudi-led coalition in Yemen.
Russian strikes on Ukraine overnight killed at least two people and injured 15 others, including two children, Ukrainian authorities said. Meanwhile, Russia said it had intercepted the vast majority of 630 Ukrainian drones launched towards Moscow.
Georgia’s Constitutional Court in Batumi will on Wednesday hear a lawsuit seeking to ban five Georgian opposition parties, four of which collectively gained 784,820 votes (37.79 per cent) in the country’s last national elections in 2024.
Azerbaijan's economy is forecast to grow by 1.7 per cent in 2026 and 2.3 per cent in 2027, according to the International Monetary Fund (IMF), while growth across the wider Caucasus and Central Asia region is expected to slow.
As fuel prices surge nearly 37 per cent and protests over living costs turn violent, French President Emmanuel Macron is seeking fresh energy supplies and partnerships in the Gulf. But can diplomacy abroad ease mounting pressure at home?
Azerbaijan and Georgia are targeting more than $2 billion in bilateral trade as the neighbouring countries strengthen energy partnerships, expand transport links and pursue new investment opportunities.
More than 200 U.S. business leaders have joined Secretary of State Marco Rubio in Uzbekistan as Washington steps up efforts to turn closer diplomatic ties with Central Asia into trade and investment deals.
Thirty-five years after restoring independence, Azerbaijan's economy has more than tripled in real terms. Official data reveal how investment, manufacturing, private enterprise and digital development have reshaped the country's economic landscape.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment