China retail sales jump 6.4%

China's retail sales growth unexpectedly accelerated as the economy rode out the tariff rollercoaster in May, offering a confidence boost to Beijing as it stares down the threat of a prolonged trade war with the US.

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Retail sales grew 6.4% last month, the fastest pace since December 2023 and exceeding all estimates, accord-ing to official data released yesterday. That helped offset a mild slowdown in industrial output, which climbed 5.8% and less than the previous month as Donald Trump's tariffs hurt demand from the world's largest economy.

The latest snapshot of the economy offers the fullest glimpse yet into how China coped with the turmoil unleashed by Trump's trade war. A tariff truce reached by Beijing and Washington in mid-May gave temporary relief to exports from China that would have faced duties of as much as 145% from the US.

The benchmark CSI 300 Index of onshore stocks was little changed.

The unexpectedly strong consumption may give policymakers some measure of relief, although economists warn it may not represent a turnaround in sentiment.