Slight pickup in China’s economy in May as retail decline slows, factory output rises

China’s economy recovered slightly last month from the fallout of tough Covid-19 restrictions, as the decline in consumer spending slowed and factories reported an increase in output.

- Aw Cheng Wei

Takings at the till in May fell 6.7 per cent from a year ago, a slight improvement from April’s 11.1 per cent plunge – the steepest yearon-year drop since the early days of the pandemic in 2020.

Industrial output edged up 0.7 per cent last month from a year ago, coming back from the 2.9 per cent decline in April, the latest economic data from the National Bureau of Statistics (NBS) showed yesterday.

Last month, major cities Beijing and Shanghai continued with drastic measures to curb Covid-19 outbreaks by suspending dining at eateries and public transport services, shuttering shops and locking down neighbourhoods.

Shanghai started loosening restrictions slowly and carefully last month – though most curbs remained in place – after an extended lockdown that lasted for more than six weeks.

Beijing stepped up its Covid-19 restrictions on May 1 by suspending dine-in services, following a semi-lockdown imposed on Chaoyang, the capital city’s most populous district, as early as April 25. Restrictions in the capital began lifting only earlier this month.