China economy weakens further in May as retail sales post first drop in over three years

Retail sales declined for the first time since December 2022, dropping 0.6% from a year earlier.

China’s urban fixed-asset investment contracted 4.1% as of end-May, dragged by real estate and manufacturing.

Manufacturing fixed-asset investment contracted for the first time since December 2020.

Industrial output was the lone bright spot, rebounding from April’s near three-year low.

The national unemployment rate fell to 5.1% in May, compared with 5.2% in April.

[Source](https://www.cnbc.com/2026/06/16/china-economy-may-retail-sales-industrial-output-fixed-asset-investment-.html)