The latest data from the National Bureau of Statistics indicates a slowdown in China’s retail sales growth for April, raising concerns about consumer spending in the world’s second-largest economy.
Retail sales climbed 5.1% year-on-year in April, falling short of analysts’ projections of 5.5% as reported in a Reuters poll. This comes after a stronger growth figure of 5.9% in March.
In contrast, industrial output saw an increase of 6.1% compared to the previous year, surpassing expectations for a 5.5% rise, though it experienced a decline from the robust 7.7% growth recorded in the previous month. This suggests that the effects of U.S. tariffs have not significantly impacted production levels.
During the first four months of this year, fixed-asset investment—including property and infrastructure—expanded by 4.0%, slightly below the anticipated growth level of 4.2% as forecasted by analysts in a Reuters poll.
The downturn in the real estate sector contributed to this trend, with investment plummeting by 10.3% on a year-on-year basis as of April.
The urban unemployment rate edged down to 5.1% in April from 5.2% in March, offering a slight glimmer of hope in a challenging economic landscape.
The statistics bureau cautioned that numerous unstable and uncertain factors in the global environment continue to pose risks. “The foundation for sustained economic recovery needs to be further consolidated,” it remarked.
The trade relationship between China and the United States has also been a point of concern, following U.S. President Donald Trump’s imposition of 145% tariffs on imports from China in April, with Beijing responding with comparable tariffs of 125% on American goods.
However, fears over the trade war have eased following a recent meeting in Switzerland between trade representatives from both nations, which led to a temporary reduction in tariffs between the two largest economies in the world.
As part of this agreement, both Beijing and Washington are set to roll back many of the tariffs imposed on each other’s products for 90 days, fostering an environment conducive to negotiating a more enduring trade agreement.
This development has prompted several global investment banks to revise their forecasts for China’s economic growth upward while reducing expectations for more aggressive stimulus measures, as the Chinese government aims to achieve a growth target of around 5% for the year.
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