China's May Retail Sales Turn Negative While Industrial Production Rises

China's retail sales fell 0.6% year‑on‑year in May, marking the first monthly decline in 3 years and 5 months since December 2022. Urban consumer goods sales dropped 0.9% while rural sales rose 1.5%; total product sales were down 0.7% and food‑service sales rose 0.6%. In contrast, industrial output jumped 4.5% YoY, beating Reuters' 4.3% forecast. Manufacturing grew 4.4%, mining 2.3% and electricity, gas and water supply 7.6%, with high‑tech equipment manufacturing surging 15.1% and equipment 9.5%. Fixed‑asset investment for Jan‑May fell 4.1% and real‑estate development investment slipped 16.2%. Housing prices declined 3.5% and the consumer‑price index rose only 1.2% versus a 1.3% forecast, while the producer‑price index surged 3.9% to its highest since July 2022. Officials highlighted a widening supply‑demand imbalance and said policy support may be needed to stabilise consumption.