China: Consumption up, investment down – Standard Chartered

Source Fxstreet

Retail sales growth accelerated to a 17-month high in May on front-loaded policy support. Better sentiment after US-China tariff truce supported steady export and IP growth. Property sector continued to contract, dragging down headline FAI; more support is needed, Standard Chartered's economists report.

Household demand recovery continued in May

"Real activity data in May suggests household consumption picked up further and production activity remained resilient partly due to the front-loading of fiscal stimulus and export orders. Industrial production (IP) and retail sales growth accelerated to 0.61% and 0.93% m/m, respectively. Export growth slowed but remained steady, while imports declined faster y/y, resulting in a larger trade surplus in May. In addition, services production index growth picked up to 6.2% y/y. We estimate that monthly GDP growth stayed above 5% y/y. We therefore see upside risk to our Q2 GDP growth forecast of 4.7% y/y."

"Meanwhile, we remain cautious on the H2 growth outlook. The housing sector remains a significant drag on the economy: property investment contracted 10.7% y/y in 5M-2025, extending 2024’s double-digit decline; home sales, home prices and new starts all fell faster in May relative to April. More policy support is needed to stabilise the market, in our view. Economic outperformance YTD has benefited from the front-loading of fiscal stimulus, including the consumer goods trade-in programme, the effects of which we expect to fade in H2. Externally, the ongoing global trade war will likely lead to slower global growth and demand. Our baseline assumes that the current US tariffs on China will be maintained following the 90-day tariff truce reached in Geneva last month, with export orders normalising from the front-loading effect."

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Cash Price Prediction: BCH hits $600, the highest level in 2025Bitcoin Cash (BCH) consolidates near $590 at the time of writing on Monday, after reaching its highest yearly level of above $600 the previous day.
Author  FXStreet
Jul 28, Mon
Bitcoin Cash (BCH) consolidates near $590 at the time of writing on Monday, after reaching its highest yearly level of above $600 the previous day.
placeholder
USD/JPY Price Forecast: Rising 20-day EMA suggests a strong upside trendThe USD/JPY pair ticks down to near 148.35 during the late Asian trading session on Tuesday, struggling to extend its three-day winning streak.
Author  FXStreet
Jul 29, Tue
The USD/JPY pair ticks down to near 148.35 during the late Asian trading session on Tuesday, struggling to extend its three-day winning streak.
placeholder
Gold price consolidates in $3,320-3,330 band; looks to Fed for meaningful impetusGold price (XAU/USD) seesaws between tepid gains/minor losses during the Asian session on Wednesday.
Author  FXStreet
21 hours ago
Gold price (XAU/USD) seesaws between tepid gains/minor losses during the Asian session on Wednesday.
placeholder
On-chain data showed that whales are aggressively accumulating more Bitcoin and EthereumOn-chain data showed that whales are aggressively accumulating more Bitcoin and Ethereum.
Author  Cryptopolitan
21 hours ago
On-chain data showed that whales are aggressively accumulating more Bitcoin and Ethereum.
placeholder
Google lays off its workforce to significantly invest in AIGoogle encourages its workers to boost their productivity by using AI. 
Author  Cryptopolitan
21 hours ago
Google encourages its workers to boost their productivity by using AI. 
goTop
quote