China's two most-watched economic indicators, industrial output and retail sales, both declined in April, confirming that the post-Covid recovery has lost momentum.
Industrial production has been trending downward. In August, output rose just 5.2% year-on-year, missing expectations. Retail sales painted an even grimmer picture, growing only 1.3% year-on-year in November. The Manufacturing PMI stood at 49.2 in November, below the 50 threshold that signals contraction.
In the first 11 months of the year, sales of new commercial properties fell 7.8% year-on-year. China's property sector accounts for roughly a quarter of GDP when including related industries.
NBS Chief Economist Fu Linghui cited "operational difficulties among enterprises" and external instability. The NBS described the core issue as "strong supply, weak demand." Factories are producing, but demand, both domestic and international, remains sluggish.
The 1.3% retail sales growth in November came despite stimulus measures including rate cuts and property support policies.