China encourages retail sales as export goods are at home, but tariffs are hit by factory output
BANGKOK (AP) – China’s economy managed overall economic performance in May. Higher US tariffs.
Data released on Monday showed retail sales rose 6.4% year-on-year. This was supported by promotions of some products as freight was suspended due to increased tariffs.
The major online shopping festivals also helped to seduce consumers to spend more. Shopping Extravaganza on June 18th began last month and online sellers offer discounts on many products.
However, as Beijing and Washington negotiated trade contracts, factories’ production and exports still suffered from tariffs, despite much of the increase in import obligations being delayed.
According to the National Bureau of Statistics, manufacturing production rose 5.8% in the same period last year, compared to 6.1% in April and 7.7% in March. Factory activity surged early this year, but as a result, it slowed down. President Donald Trump Customs duties are now in effect.
China reported it earlier export The US fell 35% in May from the previous year, but total exports rose 4.8% in May from the previous year, much lower than economists expected, dropping sharply from the 8.1% jump in April.
Overall, the economists said the world’s second largest economy has overcome the threat of hiking tariffs relatively well.
However, signs of weakness persist as the real estate market’s poor performance has not yet been reversed.
Deflation remains a problem, with consumer prices falling 0.1% in May from the previous year and 0.2% from the previous month.
Property investments fell 10.7% from January to May compared to a year ago, with home prices in most cities slightly falling, the report shows.
It said spending on factory equipment and other fixed assets rose at a relatively slow pace of 3.7% per year.
On June 18, 1998, apart from the “618” online shopping festival, which was timed to celebrate the establishment of e-commerce giant jd.com, a Chinese program to subsidize trade in home appliances, cars and other goods, promoted retail sales.
However, retail sales from January to May rose 5% from the previous year, but consumers remain cautious given the weaknesses of the real estate sector, a key storage for wealth for most families, Lynn’s economics song says in the report.
The data in May was encouraging, she said, “But a more sustainable recovery in consumption will require a shift in consumer trust, much closer to historic low waters than the historic average,” she said.
The higher tariff threat that could further disrupt trade between the two biggest economies is Deadline for August 10th To reach the next contract We’ll talk last week In London.
“As tariffs are set to be higher and exporters face wider constraints, export growth is likely to be slower by the end of the year,” wrote Zichun Huang of Capital Economics in the commentary.