Data from the National Bureau of Statistics revealed that retail sales fell by 0.6% year-over-year in May, marking the first decline since December 2022, and falling short of economists' expectations for stability.
Urban fixed-asset investment also contracted by 4.1%, worse than the anticipated 2% decline, with real estate investment suffering a notable 16.2% drop in the first five months of the year.
While industrial output increased by 4.5%, surpassing estimates, the overall economic landscape remains challenging, characterized by a 'K-shaped' recovery where manufacturing and exports thrive while consumer spending and property investments lag.
The national unemployment rate slightly improved to 5.1%, but the statistics bureau highlighted a significant imbalance between supply and demand, urging for technological advancements and employment support to stimulate economic growth.
Additionally, while producer inflation rose significantly, consumer inflation remained modest at 1.2%, indicating that higher costs are not being passed on to consumers amid weak demand