China’s economy slowed broadly in April, with fixed-asset investment unexpectedly contracting 1.6% in the first four months of 2026 after rising 1.7% in Q1, signaling a renewed downturn in capital spending. Retail sales rose just 0.2% in April, missing forecasts and marking the weakest performance since December 2022, while industrial production slowed to 4.1%, its weakest pace in almost three years and below expectations. The urban jobless rate eased to 5.2% from 5.4%, but youth unemployment cl

China’s economy slowed broadly in April, with fixed-asset investment unexpectedly contracting 1.6% in the first four months of 2026 after rising 1.7% in Q1, signaling a renewed downturn in capital spending. Retail sales rose just 0.2% in April, missing forecasts and marking the weakest performance since December 2022, while industrial production slowed to 4.1%, its weakest pace in almost three years and below expectations. The urban jobless rate eased to 5.2% from 5.4%, but youth unemployment climbed to a more than two-year high, highlighting continued labor market strain. Officials said “strong supply and weak demand” persists, with resilient exports—supported by AI-driven global demand and steady trade flows—helping offset weak domestic consumption, while policymakers maintain a cautious stance with limited new stimulus.