China’s Economic Shift: Rising Factory Output, Decline in Retail Sales Signal Divergence

China’s economic landscape in May reveals a stark divergence with industrial output thriving on global demand while retail sales experience a retreat. The contrasting trends indicate a slowdown in internal consumer activity, prompting concerns among experts. Zhiwei Zhang, Chief Economist at Pinpoint Asset Management, emphasizes the need for immediate policy adjustments to combat lackluster consumerism. The decline in automotive purchases and subdued holiday spending contribute to the overall weakening of retail sales. The surge in industrial output, coupled with a booming tech manufacturing sector, paints a positive export picture for China. However, amidst these gains, the property sector faces challenges,…