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China’s Economy Slows in April Amid Trade War Impact on Retail, Housing, and Investment

by Sophia Davis
May 28, 2025
in China, World, Wuhan
China’s economy slows in April as trade war blues hit retail sales, housing and investment – Newsday
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China’s Economic Growth Decelerates in April Amid Trade Disputes Impacting Retail, Housing, and Investment

April brought a noticeable slowdown to China’s economic expansion, reflecting the mounting challenges posed by persistent trade conflicts and internal pressures. Recent data from government sources highlights a downturn in retail sales, weakening activity in the housing sector, and reduced investment levels. These trends underscore the fragile nature of China’s recovery as it contends with prolonged trade tensions that are dampening consumer sentiment and business confidence. Experts warn about the potential long-term consequences of these developments, emphasizing the urgency for targeted policy actions aimed at revitalizing consumption and encouraging sustainable economic growth amid intensifying global competition. As the world’s second-largest economy maneuvers through these uncertain times, its slowdown could have far-reaching effects on international markets and trade flows.

April Economic Data Reveals Struggles in Retail Spending and Investment

The month of April exposed vulnerabilities within China’s economy as several key indicators pointed toward deceleration. Retail sales contracted noticeably while manufacturing output showed only marginal improvement; meanwhile, real estate activity softened considerably—signaling an overall cooling trend across vital sectors. Analysts attribute this shift largely to declining consumer confidence, which has been eroded by rising living costs alongside ongoing uncertainties stemming from global trade disputes.

Key factors influencing retail performance include:

  • Cautious Consumer Behavior: Spending patterns reflect increased prudence among households facing economic unpredictability.
  • Trade Conflict Fallout: Persistent friction with major trading partners continues to suppress demand for goods.
  • Diminished Corporate Investment: Reduced capital allocation toward infrastructure projects and property development suggests slower future growth prospects.

The housing market—a cornerstone of China’s economy—is also under pressure due to stricter regulatory measures combined with subdued buyer enthusiasm. To counteract these headwinds, government intervention through focused stimulus programs may be necessary to reinvigorate both consumer expenditure and business investments.


Economic IndicatorApril 2023 ValueMonth-over-Month Change
Retail Sales Growth Rate1.5%-0.4%
Manufacturing Purchasing Managers’ Index (PMI)49.0 (below 50 indicates contraction)
-0.5 points

-0.5 points change from previous month

Manufacturing PMI49.0-0.5
Fixed Asset Investment Growth (%)

< td >3 .9 %< / td >

< td > – 0 .6< / td >

Tags: AnalysisAprilAsiaChinaChina economyconsumer spendingeconomic impacteconomic slowdownEconomic TrendsEconomyFinancial NewsGlobal economyhousingHousing MarketinvestmentMarket AnalysisNewsdayretail salesretail sectorStock MarketTrade RelationsTrade Wartrade war impactWuhan
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Economic Indicator

Date: April 2023

% Change From Previous Month

Retail Sales Growth

1 .5%

– 0 .4%

May 2025
MTWTFSS
 1234
567891011
12131415161718
19202122232425
262728293031 
« Apr   Jun »

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