China May Retail Sales and Industrial Production Rise

A slew of data from China, including retail sales and industrial production, matched analysts’ expectations, breaking a recent string of worse than expected figures from the world’s second-largest economy.

In May, retail sales rose 10.1 percent from a year earlier, matching expectations from a Reuters poll and slightly stronger than April’s 10 percent rise despite recent signs of weak domestic demand from worse-than-expected import and inflation figures.

Industrial output for May also rose 6.1 percent from a year earlier, matching forecasts from a Reuters poll and slightly stronger than the 5.9 percent increase in April.

But fixed asset investment for the January-to-May period rose 11.4 percent from the year-earlier period, below the 12.0 percent forecast in a Reuters poll, suggesting the country’s economy is continuing to slow.

After the release of the data, the Shanghai Composite slipped into negative territory, down 0.27 percent, and Hong Kong’s Hang Seng Index slipped a tad off highs, although it remained in positive territory.

A slew of recent data have missed analysts’ expectations. China’s imports tumbled 17.9 percent in May, more than the 10.7 percent drop forecast in a Reuters poll, data released Monday showed.

China’s consumer price inflation (CPI) rose 1.2 percent in May from the year-earlier period, slightly below the 1.3 percent forecast in a Reuters poll and below the 1.5 percent rise in April.


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Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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