China’s economy weathers US tariff storm in May as consumption picks up
The trade war continued to weigh on China’s manufacturing and exports in May, but retail sales gained momentum
China’s economic data showed an improved picture for consumption in May, with retail sales beating expectations in the run-up to a major online shopping holiday even as US tariffs continued to weigh on the country’s manufacturing and exports.
Retail sales, a gauge of consumption, rose by 6.4 per cent in May, compared with the 5.1 per cent growth observed in April, data from the National Bureau of Statistics showed on Monday.
The figures exceeded a forecast of 4.85 per cent growth by financial data provider Wind.
Zhang Yuhan, principal economist at The Conference Board’s China Center, said the retail data “appeared to be strong” – especially in the dining and home-appliances segments – which was likely driven by “holiday effects combined with the continued effects of consumption-promoting policies”.