China: May retail sales beat, industrial output slows down

China’s latest macroeconomic data for May 2025 show a mixed picture of the world’s second-largest economy. According to figures released this morning by the National Bureau of Statistics, industrial production rose by 5.8% year-on-year, down from April’s 6.1% and slightly below market expectations of 5.9%. Year-to-date growth now stands at 6.3%, compared to 6.4% previously.

Business investment also disappointed, increasing by 3.7%, below both the 4% forecast and the previous month’s figure.

On a brighter note, retail sales outperformed expectations, rising by 6.4% year-on-year in May after April’s 5.1% increase, defying analysts’ forecasts for a slowdown to 4.9%. Year-to-date retail sales are up 4.06%, an improvement from the 3.73% recorded previously.

Finally, the unemployment rate fell to 5%, down from 5.1% and slightly better than the expected 5.1%.