China retail sales fell 0.6% in May, raising stimulus pressure
What's next: The weak consumption data could push Beijing toward policy easing after second-quarter GDP figures in July.
China’s economy weakened further in May as retail sales dropped 0.6% from a year earlier, the first decline since December 2022, while fixed-asset investment contracted more sharply than expected. The data added to pressure on Beijing to roll out stronger support for consumption after earlier trade-in subsidies were scaled back. Urban fixed-asset investment fell 4.1% in the first five months of 2026, with real estate a major drag as property investment inflows dropped 16.2%. Industrial output offered a partial offset, rising 4.5% in May and topping forecasts. The National Bureau of Statistics said the imbalance between strong supply and weak demand remains acute.