China's economy weathers US tariff storm in May as consumption picks up
China's economic data sent mixed signals in May, with US tariffs continuing to weigh on the country's manufacturing and exports but domestic consumption picking up slightly in the run-up to a major online shopping festival.
Retail sales, a gauge of consumption, rose by 6.4 per cent in May, compared with the 5.1 per cent growth observed in April, exceeding Wind's 4.85 per cent estimate.
The stronger consumption figures came as China gears up for one of its largest online shopping festivals of the year on June 18, and with the government continuing to boost consumer spending via a large-scale trade-in programme for appliances and other household goods.
As of May 31, China's trade-in programme had generated about 1.1 trillion yuan in sales this year, according to the Ministry of Commerce.
However, recently, some regions have halted trade-in programme subsidies due to depleted funds. Analysts also warned that the near-term demand is exhausted amid a lack of acceleration in household income growth.
Automobile retail sales volume grew in May by 13.3 per cent, year on year, lower than the 14.5 per cent growth in April, according to data from the China Passenger Car Association.
Industrial output, pressured by US tariffs and domestic fierce competition, grew in May by 5.8 per cent, year on year, data from the National Bureau of Statistics showed on Monday.
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