Financial News: China Economic Indicators Signal Slowdown

China Economic Indicators Signal Slowdown

05/18/2026 - 07:49:00 (RTTNews)

(RTTNews) - China's industrial production and retail sales logged weaker-than-expected growth in April, and investment shrunk signaling an economic slowdown in the second quarter as the ongoing Middle East conflict strain supply chains and push energy prices higher, official data revealed Monday.

Industrial production rose 4.1 percent year-on-year in April, the National Bureau of Statistics reported. Growth fell short of the expected rise of 6.0 percent and remained below March's increase of 5.7 percent.

Reflecting sluggish demand conditions, retail sales growth was subdued at 0.2 percent, marking the slowest rise since December 2022. This followed a 1.7 percent rise in March and was weaker than the expected growth of 2.0 percent.

During the January to April period, fixed asset investment dropped unexpectedly by 1.6 percent from the previous year. Investment was forecast to grow 1.7 percent. The decline largely reflected a 13.7 percent slump in property investment.

Meanwhile, the urban unemployment rate declined to 5.2 percent in April from 5.4 percent in the previous month.

A strong first quarter and continued resilience in exports suggest that China remains on track to meet its growth targets, ING economist Lynn Song said.

However, the sharper-than-expected deterioration in April's data highlights downside risks and should be seen as a warning sign that additional stimulus might be needed to stabilize the domestic side of the economy, Song added.

The economist observed that weaker growth as well as rising inflation could complicate policymaking in the coming months.

Beijing targets around 4.5-5 percent economic growth this year. The International Monetary Fund has forecast China's economy to grow 4.4 percent this year and 4.0 percent in 2027.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

U.S. Producer Prices Jump 1.1% In May, More Than Expected (02 hr(s), 07 min(s), 18 sec(s) ago)
(RTTNews) - Partly reflecting a continued spike in energy prices, the Labor Department released a ...Full Story»

U.S. Jobless Claims Unexpectedly Rise To Four-Month High (03 hr(s), 04 min(s), 18 sec(s) ago)
(RTTNews) - The Labor Department released a report on Thursday showing an unexpected uptick in fir ...Full Story»

European Central Bank Hikes Interest Rates For First Time Since 2023 (03 hr(s), 52 min(s), 18 sec(s) ago)
(RTTNews) - The European Central Bank raised its interest rates for the first time in nearly three ...Full Story»

U.S. Producer Prices Jump More Than Expected In May (04 hr(s), 11 min(s), 18 sec(s) ago)
(RTTNews) - Partly reflecting a continued spike in energy prices, the Labor Department released a ...Full Story»

U.S. Weekly Jobless Claims Unexpectedly Rise To 229,000 (04 hr(s), 17 min(s), 18 sec(s) ago)
(RTTNews) - The Labor Department released a report on Thursday showing an unexpected uptick in fir ...Full Story»

Turkey Central Bank Holds Key Rates (04 hr(s), 36 min(s), 18 sec(s) ago)
(RTTNews) - Turkey's central bank decided to hold its benchmark interest rates on Thursday as ...Full Story»

South Africa Manufacturing Output Shrinks 2.9% (05 hr(s), 25 min(s), 18 sec(s) ago)
(RTTNews) - South Africa's manufacturing production decreased in April after recovering in the ...Full Story»

Malta Industrial Production Rebounds 7.3% (05 hr(s), 39 min(s), 18 sec(s) ago)
(RTTNews) - Malta's industrial output expanded sharply in April after falling in the previous ...Full Story»