China consumer spending hits 41-month low
What's the story
China's economy showed signs of weakness in April, with retail sales, industrial output, and investment growth all falling short of expectations. The National Bureau of Statistics reported that retail sales grew by just 0.2% last month year-on-year, missing economists' forecast of a 2% rise and slowing down from March's 1.7%. This is the slowest growth since December 2022.
Economic indicators
Industrial output and investment figures
China's industrial output grew by 4.1% in April year-on-year, slowing from March's 5.7% growth and missing the expected 5.9% rise in a Reuters poll. Urban fixed asset investment, which includes real estate and infrastructure, contracted by 1.6% in the first four months of this year compared to the same period last year against an expected growth of 1.6%.
Economic resilience
Surge in exports amid rising global demand
Despite the underwhelming domestic demand, China's exporters showed a strong performance in April. The country's exports grew by 14.1%, beating the forecast of a 7.9% rise. This was largely due to factories racing to meet surging overseas demand from foreign buyers looking to stockpile goods amid fears that the US-Iran war could push global input costs higher.
Employment update
Urban unemployment rate improves slightly
China's urban unemployment rate dropped slightly to 5.2% in April, from March's 5.4%, according to data released on Monday. The decline comes as a positive sign amid the economic challenges faced by the country in recent months.