Economics

China’s Recovery Continues But Wary Consumers Show Vulnerability

  • Retail sales contraction lessens, but weaker than expected
  • Private investment shrinking much faster than state spending
Main Problem of Chinese Economy Is Lack of Demand: JD Digits’s Shen
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China’s economy continued to inch out of the coronavirus slump in May, though a reliance on industry amid sluggish consumer demand underlines the fragility of the recovery as further infections appear.

Industrial output rose 4.4% from a year earlier, versus a median estimate of a 5.0% expansion. Retail sales fell 2.8%, compared to a projected 2.3% drop. Fixed-asset investment declined 6.3% in the first five months, versus a forecast 6% drop. The surveyed urban jobless rate fell to 5.9% from 6% the previous month.