BEIJING – China’s economy slowed across the board in April, with investment resuming declines, as booming exports no longer offset a deteriorating economy at home.Fixed-asset investment unexpectedly shrank 1.6 per cent in the first four months of 2026 from a year earlier, after rising 1.7 per cent in the first quarter. Retail sales missed forecasts and rose just 0.2 per cent in April, according to data released by the National Bureau of Statistics on May 18. Industrial production also grew slower than expected at 4.1 per cent in April - the weakest in almost three years. The surveyed urban jobless rate eased to 5.2 per cent, after hitting a one-year high of 5.4 per cent in March.“China still looks like a two-speed economy: strong in strategic manufacturing and exports, but weak where household confidence matters most,” said Charu Chanana, chief investment strategist at Saxo Markets in Singapore. “The concern is not just that activity missed, but that the weakness is broadening across the domestic side of the economy.”The reading for retail sales was the worst since they contracted in December 2022, when China reopened from Covid and mass infections spread. Not a single economist surveyed by Bloomberg had predicted as pessimistic a reading for industry, retail sales and investment.The disappointing performance of the world’s second-biggest economy in April came after soaring trade – propelled by the global artificial intelligence investment boom – kept growth on track to meet the 4.5 per cent to 5 per cent target pursued by Beijing. Booming exports have been shielding China from the fallout of the Iran war even though the adverse consequences of higher oil prices are playing out on factory floors as manufacturers cope with surging raw material costs.“China’s economy kept stabilizing and improving,” the NBS said in a statement. “But we also need to see that the external situation is complex and changing, and the problem of strong supply and weak demand is still prominent. Some companies are having difficulty in operation.”Chinese exports are expected to remain strong after climbing 15 per cent in the first four months from a year ago. Stabilising trade ties with the United States, reinforced by President Donald Trump’s visit to Beijing, further bolster the outlook.But a turnaround is nowhere in sight for domestic consumption. New loans to households slumped in April, as consumer confidence shows little sign of improvement.The jobless rate of the key demographic of early-career workers climbed, to the highest in more than two years, raising concerns over risks for employment from artificial intelligence.Chinese policymakers have appeared to be taking a wait-and-see approach to the two-speed growth phenomenon, after years of efforts to coax consumers back into shops delivered only marginal gains. The government pulled back on fiscal spending in March, while the central bank has steered clear of even hinting at any further loosening in policy, amid ample market liquidity and weak demand for credit. China’s latest property sales data was a rare upbeat statistic reported on May 18. Resale home values, which are subject to less government intervention, declined in April at the slowest pace since March 2025. Analysts at firms including Citigroup and Bank of America have begun to suggest that the battered property sector is finally stabilizing. But the consumer economy still struggled as households spent less on items as varied as autos and furniture. Car sales plunged 15 per cent in April from a year earlier, the worst contraction since mid-2022, when the country was under Covid restrictions. Purchases of home appliances and furniture - products that used to be buoyed by government subsidies - declined at a double-digit pace.Gold, silver and jewelry sales plummeted 21 per cent - a huge reversal from earlier in 2026 and 2025, when soaring prices for precious metals led to a speculative investment frenzy.Saxo’s Ms Chanana said the latest “data could increase expectations of more policy support.”At the same time, “investors may want to see stronger measures aimed at consumption and property confidence rather than another round of broad liquidity,” she said. BLOOMBERG