China’s youth unemployment rose to a record in May, while major data missed expectations, according to data released Thursday by the National Bureau of Statistics.
The unemployment rate for young people ages 16 to 24 rose to 20.8% in May, a record and above the high set in April. The jobless rate for people of all ages in cities was 5.2% in May.
Retail sales for May rose by 12.7% in May from a year ago, below expectations for 13.6% growth forecast by a Reuters poll.
Industrial production rose by 3.5% in May from a year ago, slower than the 3.6% expected by the Reuters poll.
Analysts forecast a 4.4% increase in fixed asset investment for the first five months of the year from a year ago.
Fixed asset investment for the first five months of the year rose by 4% from a year ago, slower than the 4.4% predicted by Reuters.
“The national economy sustained the recovery momentum,” the statistics bureau said in a release in English.
However, the bureau warned of persistent challenges from the international environment and “mounting pressure” on the “domestic structural adjustment,” without elaborating much.
Figures for April had also missed analysts’ expectations, reflecting how China’s economic recovery from the pandemic was losing steam.
Authorities have started to loosen monetary policy in a bid to support growth, although broader measures aren’t expected until top leaders hold a regular meeting in late July.
China’s largest commercial banks last week cut deposit rates. On Tuesday, the People’s Bank of China cut its seven-day reverse repurchase rate by 10 basis points from 2% to 1.9%. The central bank is expected to lower a benchmark interest rate next week.
Slowing global growth, especially in the U.S. and Europe, is weighing on Chinese exports, a significant contributor to domestic growth.
China’s exports fell by 7.5% in May from a year ago, far worse than the 0.4% decline predicted by a Reuters poll.
However, China’s May imports dropped less than expected, down by 4.5% from a year ago.
