China’s retail sales jumped 6.4% year-on-year in May, beating market expectations and marking the strongest growth since late 2023.

The data, released Monday by the National Bureau of Statistics, showed a notable pickup from April’s 5.1% increase and was driven in part by government subsidies and early shopping festival promotions.

Industrial production, however, rose 5.8% – slightly below forecasts and down from April’s 6.1%, signalling a modest slowdown in factory activity.

Fixed asset investment for the year to date rose 3.7%, also falling short of the 3.9% forecast, as infrastructure momentum showed signs of easing.

For Australia, the data is closely watched given China’s role as its largest trading partner.