China Retail Sales Fall in May, Ending 3-Year Growth Streak

Retail sales of consumer goods in China dipped 0.6 percent year on year in May, the first negative growth after gains for almost three years, data from the National Bureau of Statistics showed on Tuesday.

Fu Linghui, chief economist of the bureau, attributed the retreat to a high comparative base last year because of the stimulus of trade-in policies. Meanwhile, bad weather in southern areas last month also dampened people's enthusiasm for off-line consumption.

"China's demand for consumption remained stable," Fu said at a press conference.

For the first time, the bureau released an indicator that combines consumption of products and services, which rose 2.8 percent on an annual basis between January and May, while services alone grew 5.4 percent in the period.

"It is more accurate to measure domestic demand with services consumption taking into consideration," Fu explained.

China's economic growth presented mixed signs in May.

Industrial production advanced 4.5 percent from a year earlier last month, rebounding from a gain of 4.1 percent in April.

But fixed-asset investment dived 4.1 percent in the first five months, cutting deeper compared with the loss of 1.6 percent between January and April.