Data published by the National Bureau of Statistics (NBS) showed that industrial production rose by 5.6% per annum in May after an increase of 6.7% per annum in April. Economists had expected growth of 6% per annum. Output slowed for manufacturing (6% vs 7.5% in April) and utilities (4.3% vs 5.8%), while activity accelerated for mining (3.6% vs 2%). In terms of industries, 33 out of 41 major sectors posted growth.
NBS also said that retail sales growth accelerated sharply in May - to 3.7% per annum (the strongest growth since February) from 2.3% per annum in April. Consensus estimates suggested an increase of 3% per annum. Meanwhile, from the beginning of 2024 (to May) fixed asset investment rose by 4% after an increase of 4.2% from January to April. Economists had expected a 4.2% increase. The unemployment rate was 5.0% in May, unchanged from April and confirming economists' forecasts.
However, today's data also pointed to continuing signs of weakness in China's real estate sector, as the decline in new home prices intensified in May to -0.71% from -0.58% in April. Among the 70 cities surveyed by NBS, 68 reported lower prices in May, compared with 64 cities in April. Meanwhile, in annual terms, new home prices fell by 4.3% in May after falling by 3.51% in April. 67 cities reported a decrease in prices in annual terms, compared with 63 cities in April. China's real estate market has been in decline for a long time and is a key drag on the country's economy. Last month, Beijing announced new measures to rescue the property sector, although many economists generally believe more needs to be done.