China retail sales plunge in May

China's economic slowdown deepened in May as retail sales fell 0.6% year-on-year, the largest monthly decline since the economy reopened after the pandemic in late 2022. Fixed-asset investment also dropped 4.1% year-on-year in the first five months of 2026, marking the steepest decline on record. The data points to weakening consumer demand and investment activity amid persistent deflationary pressures and a struggling property sector. Analysts warn that further stimulus measures may be needed to prevent a prolonged downturn.