Overview

• Retail sales rose 6.4% year-on-year in May, beating forecasts and marking the fastest growth since December 2023
• Industrial output growth slowed to 5.8% in May, missing expectations and reaching its weakest pace in six months
• New home prices fell 0.2% in May, extending a 24-month decline that underscores a two-year property downturn
• Exports to the U.S. plunged over 34% in May despite modest overall export gains driven by Southeast Asian and European markets
• The government’s consumer goods trade-in scheme has generated about 1.1 trillion yuan in sales but analysts warn that fundamental headwinds may curb a lasting recovery