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.
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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, data from the National Bureau of Statistics showed on Monday.
The figures exceeded a forecast of 4.85 per cent growth by financial data provider Wind.
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 (US$153 billion) in sales this year, according to the Ministry of Commerce. However, some regions have halted their trade-in programmes in recent weeks due to depleted funds.
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Goldman Sachs said in a note that during the Labor Day holiday this year, nationwide domestic visitors and domestic tourism revenue grew by 6.4 per cent and 8 per cent year on year, respectively, also pointing to improved consumption in May.
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.
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