Citizens are shopping at a supermarket in Nanjing, East China’s Jiangsu province, on March 9, 2024.
Costfoto | Nurphoto | Getty Images
China’s retail sales growth slowed in April, data from the National Bureau of Statistics showed Monday, signaling that consumption remains a worry for the world’s second-largest economy.
Retail sales rose 5.1% from a year earlier in April, missing analysts’ estimates of 5.5% growth, according to a Reuters poll. Sales had grown by 5.9% in the previous month.
Industrial output grew 6.1% year on year in April, stronger than analysts’ expectations for a 5.5% rise, while slowing down from the 7.7% jump in March, indicating the impact from U.S. tariffs was not particularly pronounced.
Fixed-asset investment for the first four months this year, which includes property and infrastructure investment, expanded 4.0%, slightly lower than analysts’ expectations for a 4.2% growth in a Reuters poll.
The drag from real estate worsened within fixed asset investment, falling 10.3% for the year as of April.
The urban survey-based unemployment rate in April eased to 5.1% from 5.2% in March.
“We should be aware that there are still many unstable and uncertain factors in [the] external environment,” the statistics bureau said. “The foundation for sustained economic recovery needs to be further consolidated.”
U.S. President Donald Trump placed tariffs of 145% on imports from China that came into effect in April. Beijing retaliated with tariffs in kind, with 125% levies on American imports.
Trade-war fears have receded after a meeting of U.S. and Chinese trade representatives in Switzerland earlier this month led to a lower set of levies between the world’s two largest economies.
Beijing and Washington agreed to roll back most of the tariffs imposed on each other’s goods for 90 days, allowing some room for further negotiation to reach a more lasting deal.
That prompted a slew of global investment banks to raise their forecasts for China’s economic growth this year while paring back expectations for more proactive stimulus as Beijing strives to reach its growth target of around 5%.
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