China's Consumer Spending Shows Signs of Recovery Despite Economic Slowdown

China showed modest signs of improvement in consumer spending despite broader economic weakness, with retail sales rising 1.0% in June compared with a year earlier, according to the National Bureau of Statistics, Doloresz Katanich reported for Euronews.

Retail spending in China improved in June, although broader economic challenges remain. (Photo: FMoo, Wikimedia Commons)

The increase marked a rebound from May's decline and exceeded market expectations.

Sales of communication equipment and cosmetics were particularly strong, while demand for automobiles and other high-value consumer goods remained subdued.

Industrial production also outperformed expectations, rising 5.3% year on year in June, supported by stronger manufacturing output.

Some economists argue that China's economy is becoming increasingly imbalanced as government support and private investment continue to flow into advanced industries such as artificial intelligence, semiconductors, and robotics, while lower-value manufacturing and labor-intensive service sectors continue to struggle, Agence France-Presse (AFP) also reported.