China's Economy Stumbles in April

China's economic expansion decelerated in April 2026, with industrial output and retail sales falling below analyst expectations, according to data released by Bureau of Statistics (NBS) on Monday. This slowdown indicates a loss of momentum from the first quarter, driven by higher energy costs and subdued domestic demand.

Industrial output increased by 4.1% year-on-year in April, a decrease from 5.7% in March and significantly below the poll forecast of 5.9%. This represents the slowest growth rate since July 2023. Retail sales, a key indicator of consumption, rose by only 0.2% in April, a sharp decline from 1.7% in March and the weakest gain since December 2022, also missing the 2% forecast.

Fixed-asset investment contracted by 1.6% in the first four months of 2026, following a 1.7% rise in the January-March period. Domestic car sales dropped by 21.6% in April year-on-year, marking the seventh consecutive month of decline. While China's economy grew by 5.0% in the first quarter, external risks such as the Middle East conflict, coupled with a protracted downturn in the property market, continue to exert pressure on overall growth.