BEIJING, CHINA / MENA Newswire / — China’s economy slowed sharply in April as retail sales rose just 0.2 percent from a year earlier, the weakest increase in 40 months and a sign that consumer spending lost momentum at the start of the second quarter. The National Bureau of Statistics said total retail sales of consumer goods reached 3.9 trillion yuan in April, while sales fell 0.48 percent from March on a seasonally adjusted basis.
The April reading marked a steep deceleration from March, when retail sales increased 1.7 percent year on year. In the first four months of 2026, total retail sales rose 1.9 percent to 16.49 trillion yuan. Online retail sales of physical goods increased 7.3 percent during the January to April period and accounted for 25.6 percent of total consumer goods sales, showing stronger activity in digital channels than in broader consumption.
Industrial production also slowed in April. Value added industrial output from enterprises above designated size rose 4.1 percent year on year, down from 5.7 percent in March. The broader January to April reading showed industrial output up 5.6 percent, with equipment manufacturing and high technology manufacturing expanding faster than overall industry. The official manufacturing purchasing managers’ index stood at 50.3 in April, slightly above the 50 point line separating expansion from contraction.
Consumption weakness broadens
Fixed asset investment added to the weaker April picture, declining 1.6 percent year on year in the first four months, excluding rural households. The National Bureau of Statistics said investment in real estate development fell 13.7 percent over the same period, while infrastructure investment rose 4.3 percent and manufacturing investment increased 1.2 percent. On a monthly basis, fixed asset investment declined 2.36 percent in April, underscoring softness in capital spending.
Property related indicators remained under pressure. Commercial floor space sold fell in the January to April period, while funds received by real estate developers also declined. The housing sector has remained a major drag on investment and household confidence, with declines in real estate development investment weighing on construction activity, building materials demand and related consumer purchases. The April data showed stronger growth in selected high technology investment categories, including aerospace vehicle and equipment manufacturing.
Output slows with investment
Trade data showed external demand continued to provide support, though it did not prevent the slowdown in domestic indicators. The value of imports and exports of goods increased in the first four months, with exports rising faster than imports. China’s consumer price index rose 1.2 percent year on year in April, while producer prices rose 2.8 percent. The surveyed urban unemployment rate was 5.2 percent, down from 5.4 percent in March.
The April figures followed a first quarter in which gross domestic product expanded 5.0 percent year on year. The latest data showed a weaker start to the second quarter across retail sales, industrial output and fixed asset investment, while official indicators still recorded growth in high technology manufacturing, online retail and exports. Taken together, the April release pointed to uneven economic performance, with resilient production segments contrasting with subdued household demand and continued property sector weakness.