China’s retail sales growth slow in April

China's retail sales rose by 5.1% YoY in April 2025, reaching RMB 3.72 trillion. However, the figure fell short of market expectations of 5.5% and marked a slowdown from 5.9% back in March, according to the National Bureau of Statistics (NBS).

Looking into specific categories, China's retail sales within the catering sector grew by 5.2%. In Q1 2025, China's goods retail sales expanded by 4.7%, and catering revenue rose by 4.8%. The softer retail performance suggests consumers remain cautious despite government efforts to stimulate domestic demand

On the other hand, the country's industrial production showed robust growth, with the added value of major industrial firms rising 6.1% YoY in April, beating forecasts. The mining sector expanded by 5.7%, manufacturing by 6.6%, and utilities (electricity, heat, gas, and water) by 2.1%. High-tech and equipment manufacturing led the charge, surging 10.0% and 9.8% YoY, respectively.

Notably, production of 3D printing equipment, industrial robots, and new energy vehicles soared by 60.7%, 51.5%, and 38.9%, underscoring China’s rapid advancements in advanced manufacturing.

Private enterprises outperformed, with output rising 6.7%, while foreign-invested firms saw a more modest 3.9% increase. The strong industrial performance comes despite the manufacturing Purchasing Managers’ Index (PMI) remaining slightly contractionary at 49.0% in April.

Fixed-asset investment

During Q1 2025, China's fixed-asset investment (excluding rural households) grew by 4.0% YoY to RMB 14.7 trillion. Excluding real estate, investment jumped 8.0%, reflecting stronger momentum in infrastructure and manufacturing.

Infrastructure spending rose by 5.8%, while manufacturing investment surged by 8.8%. However, the property sector remained a drag, with investment declining by 10.3% and new home sales falling by 2.8% in area and 3.2% in value.

High-tech sectors saw particularly explosive growth, with investment in information services soaring by 40.6%, computer equipment manufacturing up by 28.9%, and aerospace equipment rising by 23.9%. Private investment, excluding real estate, expanded by 5.8%, signalling improved business confidence.

Linghui Fu, spokesperson of the NBS, said: "Overall, in April, while external shocks increased, China's economy maintained a stable foundation with multiple advantages, strong resilience and enormous potential. Through the coordinated efforts of macro policies and proactive responses from all sectors, the national economy has operated steadily despite challenges, while continuously improving development quality. This further enhances our confidence and capability to address various risks and challenges."

However, Fu added that the international environment remains full of uncertainties, with multiple risks interwoven and overlapping, and the foundation for the domestic economy’s recovery and upward trend still needs to be consolidated.

Looking ahead, Fu said policymakers would focus on “stabilising employment, enterprises, markets, and expectations” while promoting high-quality growth and strengthening domestic demand.

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