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.
Oil prices edged lower on Tuesday (16 June) as traders assessed the possibility of oil supplies returning through the Strait of Hormuz following a pre...
The United Kingdom has imposed a new wave of sanctions on Russia, targeting key financial institutions, logistics networks and vessels accused of help...
Tunisia have appointed Hervé Renard as head coach after dismissing Sabri Lamouchi following the team's 5-1 defeat to Sweden....
U.S. President Donald Trump said a preliminary agreement to end the war in the Gulf has been signed by the U.S. and Iran, though details have yet to b...
Ukraine has said it struck an oil refinery in Russia’s Moscow region, marking one of the deepest reported attacks into Russian territory in recent m...
The World Bank has announced that Tajikistan's medium-term outlook remains favourable, with growth projected to moderate to 7% in 2025 and converge toward a growth rate of 4.5% in 2026 and 5% in 2027.
The International Monetary Fund (IMF) has approved a $625 million loan programme for Chad to support economic growth and social spending amid regional and economic challenges.
Uzbekistan’s economic performance has remained strong, with robust growth, narrowing consolidated fiscal and current account deficits, and ample international reserves, stated the International Monetary Fund following to the 2025 Article IV Consultation with the Republic of Uzbekistan.
China’s development centered on digital resources is gaining momentum under a new three-year plan aimed at boosting information use to support economic and social growth.
Details of a reported draft memorandum of understanding between the United States and Iran offer the clearest picture yet of how both sides plan to end months of conflict and move towards a longer-term settlement.
The U.S. and Iran say they have reached a deal to end their conflict, with an immediate ceasefire and reopening of the Strait of Hormuz after the lifting of the U.S. naval blockade. Talks will continue over the next 60 days to finalise the agreement
A senior U.S. official said on Monday that the memorandum of understanding linked to the U.S.-Iran agreement had been signed by President Donald Trump, Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Qalibaf.
Israeli Prime Minister Benjamin Netanyahu has told U.S. President Donald Trump that Israel does not consider itself bound by a Lebanon-related provision in an emerging agreement with Iran, according to Israeli officials.
Switzerland on Sunday rejected a referendum proposal to cap its population at 10 million, a projection showed, as voters prioritised economic stability and the country's ties with the European Union over immigration concerns.
Macao opened the 17th International Infrastructure Investment and Construction Forum on Thursday, with officials and industry leaders highlighting the role of green and digital technologies in strengthening global infrastructure connectivity.
At the start of 2026, something unusual happened in China's car market. BYD, the company that had spent years at the top of the domestic sales charts, was knocked off its perch by a rival.
Apple has unveiled a long-awaited upgrade to Siri, aiming to close the gap with technology rivals and emerging artificial intelligence firms in an increasingly competitive market.
ChatGPT maker OpenAI has confidentially filed for a U.S. initial public offering (IPO), the company said on Monday, joining rival Anthropic in a race to the stock market as investors seek exposure to the artificial intelligence boom.
Chinese carmakers are rapidly reshaping the global automotive market, with record exports, soaring electric vehicle sales and growing investments overseas putting pressure on established European, Japanese and U.S. rivals.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment