The downturn points to a broader loss of momentum, with May marking the steepest retail sales decline since the economy reopened in late 2022.
China’s slowdown intensified in May as retail sales fell 0.6% year over year, the largest monthly decline since the economy reopened after the pandemic in late 2022. Fixed-asset investment, a key gauge of spending on long-term projects and infrastructure, also fell 4.1% year over year in the first five months of 2026, signaling weaker demand and softer economic activity across both consumers and investment.