China's growth falters as May retail sales expected down 0.2%
China's economy is losing momentum, with people spending less and businesses holding back on investments.
Retail sales are expected to slip by 0.2% in May 2026, the first drop since China reopened after COVID-19.
Inflation is rising, jobs are harder to find, and consumer confidence just hit its lowest point since last year.
China investment forecast to drop 2.3%
People are paying off loans instead of borrowing, so banks have less to lend out.
Investment in things like factories and infrastructure was forecast to drop 2.3% for the first five months of the year, with a May decline estimated at 7% year on year thanks to bad weather and slower government spending.
Even though factories saw a small boost from exports (especially AI hardware), demand at home is still weak and energy costs are up.
Experts warn that unless the government steps in with stronger policies, growth could fall short of this year's target.