China's Retail Sales Exceed Expectations in May, Industrial Output Falls Short

China's retail sales in May surpassed expectations, increasing by 3.7% compared to the previous year, exceeding the anticipated 3% rise from a Reuters poll. However, industrial output and fixed asset investment both fell short of forecasts. Industrial output grew by 5.6% year-on-year, below the expected 6% increase, while fixed asset investment rose by 4%, missing the 4.2% forecast.

Despite these shortfalls, China's exports showed strong performance with a 7.6% increase, beating the forecasted 6% rise. In contrast, imports grew by only 1.8%. Outstanding yuan loans rose by 9.3% in May compared to the previous year, marking the slowest increase since 1978. The M1 money supply experienced a record drop of 4.3%, the largest since 1986, according to Wind Information. Consumer prices excluding food and energy rose by 0.6%.