Asia Eyes Key Chinese Industrial Profit Data for May
Cooling factory growth as profits slowly rebound
China’s industrial output in May rose 5.8% year‑on‑year, marking the slowest pace since November and missing estimates. But industrial profits climbed 1.4% in the first five months—an improvement from earlier data, signaling early signs of resilience.
Consumers step in as property sector weakens
Retail sales surged 6.4%, the fastest growth since December, fueled by early shopping festivals and stimulus efforts. This buying momentum helps offset weakness in property investment (down 10.7%), and a slowdown in export‑driven factory activity.
External pressures threaten to derail rebound
Export volumes to the U.S. dropped a sharp 34%, weighed by tariffs. With global demand cooling and real estate still under strain, Beijing may extend support through rate cuts and liquidity measures—but growth remains fragile into H2.