China, with consumer spending decline in May, export boom supports economy

(Adnkronos) – Consumer spending fell in China for the first time since December 2022, during the COVID pandemic era. The May figure is 0.6 percent lower than that of last May, according to new data released by Beijing’s National Bureau of Statistics. Investments also contracted further, by 4.1 percent in the January-May period compared to the previous year, still driven by the real estate market crisis. However, the trend has worsened, from the 1.6 percent decrease recorded in the first four months of the year. Therefore, this year the Chinese economy has been primarily driven by exports, however, creating an imbalance in global trade at the center of global geopolitical tensions. Industrial production increased by 4.5 percent compared to last year. Exports were up almost 20 percent last month compared to the same period last year, mainly due to demand for AI products and renewable energy.