Economic Watch: China's economy maintained steady momentum in May amid external uncertainties

BEIJING, June 16 (Xinhua) -- China's economy continued to expand steadily in May, supported by ongoing policy measures that helped sustain recovery amid global uncertainties, official data showed on Monday.

Key economic indicators -- industrial production, retail sales, investment and services -- extended gains last month, while employment continued its stable trend, according to the National Bureau of Statistics (NBS).

Noting "a rapidly changing international environment," NBS spokesperson Fu Linghui said that China's economy has demonstrated strong resilience and vitality, backed by government efforts to expand domestic demand and maintain the stability of employment, businesses, markets and expectations.

China's consumer spending in May posted its strongest growth in nearly 18 months, with retail sales of consumer goods expanding 6.4 percent year on year in May, a 1.3-percentage-point increase from April.

The services sector accelerated, with the services production index climbing 6.2 percent last month, accelerating from the 6 percent growth recorded in April. "Growing domestic consumption and holiday travel drove faster services growth," Fu noted.

Industrial production rose 5.8 percent year on year in May, NBS data shows, with equipment and high-tech manufacturing leading with 9 percent and 8.6 percent respective growth figures. Fixed-asset investment increased 3.7 percent year on year in the first five months of 2025.

On the job front, the average surveyed urban unemployment rate in China stood at 5 percent in May, down 0.1 percentage points from April.

"The unemployment rate among the main working population remained stable, with the youth unemployment rate declining for a third consecutive month, reflecting continued stability in the overall job market," Fu revealed.

He told press that May's stable economic performance was built on sustained macro policy efforts, which facilitated demand expansion, production growth and improved expectations, and unleashed economic vitality.

"The country's trade-in policies significantly accelerated relevant consumer goods sales," he noted in particular. Retail sales of household appliances and audio-visual equipment, communication devices, furniture, and cultural and office supplies grew between 25.6 percent and 53 percent year on year last month.

"Together, these categories contributed 1.9 percentage points to the overall growth of retail sales of consumer goods," Fu said.

China launched a consumer goods trade-in program last year to boost consumer spending, subsidizing trade-ins of automobiles, home appliances and home decoration products. It expanded the scope of the program earlier this year.

The effective implementation of trade-in policies has also boosted consumer demand for green, smart and high-quality products, which in turn drove production growth. In May, the output of new energy vehicles, tablet computers and e-bikes grew 31.7 percent, 30.9 percent and 20.5 percent year on year, respectively.

Fu said that this overall performance suggests strong support for China's economic growth throughout the year, but also cautioned about the complicated, severe external environment and domestic pressure from the transition from traditional economic drivers.

China's gross domestic product grew 5.4 percent year on year in the first quarter of 2025. The country is targeting full-year economic growth of about 5 percent this year.

Looking ahead, Fu said that the foundation underpinning China's long-term economic development has not changed, citing the country's solid development momentum, effective pro-growth policies and strengthened innovation, all of which provide support for quality growth.

"For the first half of 2025, the Chinese economy is expected to maintain its overall stability while achieving stable progress," he said.

He pledged that China will work to implement its more proactive macro policies, enhance innovation-driven development, and steadily advance high-quality growth to promote solid, sustained economic development.

"China has ample policy reserves that allow for dynamic adjustments to address evolving challenges, which will ensure continued support for stable economic operations," Fu said. Enditem