Retail sales in China suffered the largest decline in April in the past two years, according to authorities, as the country is facing its worst outbreak since the outbreak of Covid-19.
The leading indicator of household spending, retail sales fell 11.1% yoy last month. This is the second consecutive month of decline for this index (-3.5% in March).
Also in April, industrial production fell by 2.9% per year and by 7% compared to the previous month.
Unemployment rate close to historic highs
Unemployment also increased dramatically last month in China, approaching all-time highs as the country faces an unprecedented Covid outbreak. The unemployment rate was 6.1% in April, the National Bureau of Statistics said. This level is close to the all-time high of 6.2% recorded in February 2020, at the height of the initial pandemic wave.
Yuan at its lowest against the dollar since October 2020
On the currency front, the yuan is at its lowest since October 2020 against the dollar, following the publication of disappointing data on retail sales and also on industrial production.