China Retail Sales Fall Most Since Post-Pandemic Reopening
China's retail sales dropped 0.6% year-on-year in May, the steepest decline since late 2022, while fixed-asset investment fell 4.1% in the first five months of 2026, led by a 16.2% plunge in property investment.
New data from China points to a deepening economic slowdown. Retail sales fell 0.6% year-on-year in May, marking the largest monthly drop since the economy reopened after the pandemic in late 2022.
Fixed-asset investment declined 4.1% year-on-year in the first five months of 2026, the sharpest contraction since May 2020. This follows a 1.6% decrease in the January-April period. Property investment led the downturn, plunging 16.2% year-on-year, compared to a 13.7% slump in the prior four-month span.
Source: The Kobeissi Letter