Economics
As Trade War Hits, China Factories See Slowest Growth Since 2002
- Retail sales rise as May Day holiday likely boosted spending
- Investment continues slowing as private sector turns cautious
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China’s industrial output growth slowed to the weakest pace since 2002 and investment decelerated, highlighting the headwinds the economy is facing as it grapples with the U.S. tariff war.
Industrial output rose 5% from a year earlier, while fixed-asset investment expanded 5.6% in the first five months. Both were slower than in April and below expectations. Retail sales was a bright spot, expanding 8.6% compared to May last year, partly because a longer May Day holiday encouraged more tourism and spending.