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American Focus > Blog > Economy > China’s April retail sales growth of 5.1% misses expectations as consumption remains a worry
Economy

China’s April retail sales growth of 5.1% misses expectations as consumption remains a worry

Last updated: May 18, 2025 9:40 pm
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China’s April retail sales growth of 5.1% misses expectations as consumption remains a worry
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China’s retail sales growth showed signs of slowing down in April, as reported by the National Bureau of Statistics. This indicates that consumption continues to be a concern for the Chinese economy. Retail sales increased by 5.1% compared to the previous year, falling short of analysts’ expectations of 5.5% growth. In the previous month, sales had grown by 5.9%.

On the other hand, industrial output saw a growth of 6.1% year on year in April, surpassing analysts’ predictions of a 5.5% rise. However, this growth rate was lower than the 7.7% increase seen in March. This suggests that the impact of U.S. tariffs on China may not be as severe as initially anticipated.

The statistics bureau highlighted the presence of external uncertainties and emphasized the need to strengthen the foundation for sustained economic recovery. Fixed-asset investment, which includes property and infrastructure, increased by 4.0% in the first four months of the year. This growth rate was slightly lower than the 4.2% growth expected by analysts.

The urban unemployment rate in April decreased to 5.1% from 5.2% in March, alleviating concerns of significant job losses due to the U.S.-China trade war. The trade tensions between the two countries escalated in April when President Donald Trump imposed tariffs on Chinese imports, which were reciprocated by Beijing.

However, fears of a prolonged trade war subsided after a meeting between U.S. and Chinese trade representatives in Switzerland resulted in a temporary truce. Both countries agreed to roll back most tariffs for 90 days to facilitate further negotiations towards a lasting agreement.

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Following the trade truce, several global investment banks revised their forecasts for China’s economic growth upwards while scaling back expectations for additional stimulus measures. Despite the positive developments, challenges persist in the Chinese economy, with indicators showing a decline in factory activity and persistent deflationary pressures.

China’s exports performed better than expected in April, with a surge in shipments to Southeast Asian countries offsetting a decline in exports to the U.S. The Chinese government has implemented stimulus measures to boost consumption, support affected businesses, and maintain employment stability.

Looking ahead, analysts anticipate China’s economic growth to remain above 5% in the second quarter, following a solid 5.4% growth rate in the first quarter. The People’s Bank of China recently announced a cut in the seven-day reverse repurchase rates to stimulate economic activity. These measures, combined with the temporary trade truce, are expected to support China’s economic growth in the coming months.

TAGGED:AprilChinasconsumptionexpectationsGrowthMissesremainsretailSalesworry
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