MNI BRIEF: China May Sales Hit Three-Month High On Holiday

China's consumption rebounded to mark the quickest growth since February thanks to the week-long May Day holiday, but industrial output and investment both slowed more than expected, data released by the National Bureau of Statistics on Monday showed.

Retail sales grew 3.7% y/y in May to hit a three-month high. The figure rose from the previous 2.3% gain and outpaced the 2.8% forecast. Retail sales grew 4.1% y/y in the first five months, while service retail sales rose by 7.9%.

Industrial production rose 5.6% y/y in May, decelerating from April's 6.7% growth and underperforming the expected 5.9%. Industrial output grew 6.2% from January to May.

Fixed-asset investment registered a 4.0% y/y increase, moderating from the 4.2% growth over the Jan-Apr period and missing the 4.2% consensus. Property investment fell further by 10.1% following the previous 9.8% decrease, marking the biggest fall since Feb 2020 (-16.3%). Infrastructure investment and manufacturing investment grew by 5.7% and 9.6%, compared with the previous 6.0% and 9.7%.