China’s deputy-ministerial statistics agency, under the State Council
Fresh data show China’s May retail sales stalled while investment contracts widen, signaling a slowdown in domestic demand. Yet exports are proving resilient thanks to AI-related demand and renewables, and industrial output edges higher, painting a nuanced picture of a faltering domestic economy still buoyed by external demand.
China has posted a contraction in retail sales and a sharper drop in urban investment in May, signaling a deepening economic slowdown even as factory output improves.Officials flag a need for technology development and stronger employment support amid a K-shaped recovery.
Retail volumes have risen in May as hot weather and promotions boosted demand. Online sales and department stores led the gain, while food retailers fell. The three-month trend remains mixed amid shifting consumer behavior.
China's official manufacturing PMI has edged into expansion at 50.3 in June from May's 50.0, with improvements in new orders and production. Export demand remains a key engine, while domestic consumption shows caution amid a prolonged property downturn. Analysts expect policy support to sustain momentum.
China's anti-corruption drive has extended to the coal sector, with a Shanxi mine official under investigation as authorities broaden inspections following May's deadly blast. Reports say the probe targets discipline and law violations, underscoring ongoing reforms in the province's heavy industry.
China has expanded 4.3% year on year in Q2, the slowest pace in over three years. Exports have helped but domestic consumption remains sluggish, with a trade surplus widening as global demand for AI-driven goods supports shipments. Analysts caution that sustained growth depends on domestic demand improving.