China's economy slows in April as trade war blues hit retail sales, housing and investment
China's economy showed signs of slowing in April as President Donald Trump's trade war took a toll, with retail sales, property and investment coming in weaker than economists had forecast.
Industrial production slowed as Trump's painfully high tariffs of up to 145%, and 125% retaliatory duties imposed by Beijing, took effect and shipments were curtailed.
National Statistics Bureau spokesperson Fu Linghui said the general trend was positive though he pointed to "external shocks" that had gained intensity.
"It should also be noted that there are still many outside unstable and uncertain factors, and the foundation for the continued recovery and improvement of the national economy needs to be further consolidated," Fu said.
Here are a few key indicators reported Monday.
Retail sales
Chinese consumers have been holding back after the shocks of a prolonged downturn in the housing market that is the source of much household wealth. Retail sales rose 5.1% from a year earlier in April, below economists' expectations for a 6% increase.
Fu said Beijing would continue to focus on supporting job creation and spurring more domestic demand.
He also said China must stop prices from falling. The consumer price index fell 0.1% in April. Such deflation is both a symptom of weak demand and also a factor behind shoppers' reluctance to spend, in hopes of getting better deals later.
"The current overall price level is low, which puts pressure on production and companies' operations and affects jobs and incomes, so it's important to promote a reasonable recovery of prices," Fu said.
On the U.S. side, consumer sentiment has fallen slightly in May for the fifth straight month, with Americans increasingly worried that the trade war will worsen inflation.
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