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BEIJING (AP) — China’s consumer and factory activity weakened in May and record-breaking unemployment among young people in cities rose as an economic rebound following the end of anti-virus controls slowed.
Surveys found 20.8% of potential workers in cities aged 16-24 were unemployed, up from April’s previous record of 20.4%, the government reported Thursday.
China’s economic activity rebounded after the ruling Communist Party in December lifted controls that cut off access to major cities for weeks at a time and blocked most international travel. But consumers, uneasy about possible job losses, returned to shops and restaurants less quickly than expected.
“The domestic structural adjustment has mounting pressure and the foundation for the economic recovery is not yet solid,” the National Bureau of Statistics said in a report.
Retail sales rose 12.7% over a year earlier, but that was down from April’s 18.4%, which was barely half of the rate expected by forecasters. Growth in factory output decelerated to 3.5% from the previous month’s 5.6% after interest rate hikes in the United States and Europe to cool inflation depressed demand for Chinese exports.
That was in line with expectations by private sector forecasters who say the peak of China’s rebound probably has passed.
Economic growth accelerated to 4.5% over a year earlier in the three months ending in March from the previous quarter’s 2.9%. Growth will have to accelerate in coming quarters to hit the ruling party’s annual target of “around 5%.”