China's economy loses steam in April as investment, retail falter
China's economy lost steam in April 2026, mostly due to struggles at home.
Investment in things like factories and infrastructure dropped by 1.6% after rising earlier this year, and retail sales barely grew, up just 0.2%, the weakest since late 2022.
Low consumer confidence and job worries played a big part in the slowdown.
China industrial growth slows, exports jump
Industrial production grew only 4.1%, its slowest pace in nearly three years, with electricity generation by state-owned companies down sharply.
On the bright side, urban unemployment eased to 5.2% and exports jumped thanks to a global AI investment boom, but domestic spending stayed sluggish.
As chief investment strategist Charu Chanana at Saxo Markets in Singapore put it, China still looks like a two-speed economy: strong in strategic manufacturing and exports, but weak where household confidence matters most, with policymakers holding off on new stimulus while they try to balance growth with ongoing supply-demand issues.