From CNBC: 2025-06-16 00:17:00

In Shanghai, China, long lines form outside jewelry stores as the city offers consumption vouchers to boost spending. Retail sales in May grew at their fastest rate since 2023, with a 6.4% increase from last year, beating analyst expectations. Industrial output slowed to 5.8%, below forecasts.

China’s improving consumption in May was attributed to various factors, including a trade-in program and increased online shopping. However, maintaining stable growth remains a challenge due to trade policy uncertainty. Property investment contracted 10.7% in the first five months, deepening the economic struggle.

A tariff deal between Beijing and Washington provided relief for Chinese exports, with a 90-day truce on levies. China’s exports to the U.S. dropped by over 34% in May, prompting businesses to explore alternative markets. U.S. tariffs on Chinese imports will remain at 55%, according to Commerce Secretary Howard Lutnick.

China’s exports in May grew less than expected, with a significant decline in U.S.-bound goods. Surging shipments to other regions offset the decline. The urban survey-based unemployment rate decreased to 5.0%, the lowest since November. Consumer prices and producer prices continue to decline, presenting challenges for policymakers.

Despite challenges, China’s GDP growth is on track to exceed 5% in the first half of the year. Economists caution that private consumption may face obstacles due to various factors, including the end of subsidies and shopping festivals. Additional stimulus may be needed if the economy weakens, with potential for future fiscal support.

Read more: China retail sales, industrial output, fixed asset investment in May