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China’s Spending Slowdown Deepens as Households Tighten Their Belts
The New York Times • • business
Key Points:
- China's retail sales fell by 0.6% year-over-year in May, marking the first decline since December 2022 and signaling a deepening slowdown in consumer spending.
- The drop is attributed to the ongoing housing market crash, which has made millions of families hesitant to spend.
- The decline was unexpected given rising energy costs and increased gasoline sales, which typically boost retail figures; however, inflation-adjusted spending likely decreased even more sharply.
- This trend highlights persistent economic challenges despite the easing of COVID-19 restrictions earlier this year.
