China's economy falters in April as key indicators disappoint. Retail sales grew just 0.2% year-over-year, marking the weakest performance since December 2022 and falling far short of the 2% forecast. Industrial output climbed 4.1%, undershooting expectations of 5.9% growth. Most concerning, urban fixed asset investment contracted 1.6% in the first four months, reversing earlier gains as the property sector plunged 13.7% this year. Property investment has nearly halved since its 2021 peak, triggering significant job losses across construction. Home prices continued declining in April, deepening household balance sheet pressures. The bright spot came from exports, which surged 14.1% as factories met overseas demand, but this strength proved insufficient to offset domestic weakness. Unemployment edged lower to 5.
