China faces April slowdown as retail, real estate, and investment take a hit

Posted on May 20, 2025   |  

China’s economy weakened in April, with retail sales, housing, and investment falling short of expectations due to ongoing trade tensions with the U.S.

Tariffs of up to 145% from the U.S. and 125% retaliatory duties from China impacted industrial production and shipments.

Retail sales grew only 5.1% in April, missing the 6% growth forecast by economists.

The consumer price index dropped by 0.1%, signaling deflation and weak consumer demand.

Chinese shoppers are spending less, hoping for further price drops, partly due to falling property values.

Industrial production rose 6.1% in April, slower than March’s 7.7% growth, as trade barriers limited export activity.

Fixed asset investment rose 4% from January to April, while property investment fell 10.3% year-on-year.

New home prices also declined slightly, reflecting continued stress in China’s real estate market.

In the U.S., consumer sentiment declined for the fifth month in a row, as inflation fears linked to the trade war continue to grow.