China’s Retail Sales Growth Slows to 5.1% in April, Missing Expectations

China’s retail sales rose 5.1% in April from a year earlier, falling short of expectations and signaling that domestic consumption remains a concern for the country’s economy. Analysts had expected a 5.5% rise, while March had shown a stronger 5.9% increase.

The data, released Monday by the National Bureau of Statistics, suggests that consumers are still cautious despite government efforts to boost spending.

Industrial production rose 6.1% year-on-year in April, beating expectations but slowing from March’s 7.7% growth. Fixed-asset investment, including infrastructure and real estate, grew 4.0% in the first four months of 2025, slightly below forecasts. Within that, property investment dropped 10.3% compared to last year.

The urban unemployment rate fell slightly to 5.1% in April, from 5.2% in March. The small improvement comes amid ongoing U.S.-China trade tensions, which had raised fears of job losses.

In April, U.S. President Donald Trump implemented tariffs of up to 145% on Chinese imports. China responded with tariffs of 125% on American goods. However, a recent meeting between U.S. and Chinese officials in Switzerland led to a temporary rollback of tariffs for 90 days, helping to ease global trade concerns.

Despite the pressures, China’s exports surged in April, helped by increased shipments to Southeast Asia. Exports to the U.S. fell sharply, dropping 21% year-on-year in April alone.

Meanwhile, deflation remains a concern. Consumer prices fell for the third month in a row, and wholesale prices saw their biggest drop in six months. A key index of factory activity also hit a 16-month low.

In response, the Chinese government has launched various stimulus efforts to support demand and employment. Earlier this month, the People’s Bank of China lowered the short-term interest rate from 1.5% to 1.4%, and a cut to the main lending rates is expected soon.

Some economists believe these measures may be paused for now, given signs of stability and the temporary trade truce. Growth in the second quarter is expected to stay above 5%, following a 5.4% expansion in the first quarter.