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Gregory Daco reports that China experienced a contraction in consumer spending in May for the first time since the pandemic, while investment also showed signs of deterioration.
Data indicate retail sales fell 0.6% year-over-year, and fixed asset investment dropped 4.1% year-to-date. However, industrial production increased by 4.5% year-over-year and exports surged 19%, with chip exports rising 111%.
Daco previously reported that U.S. headline CPI inflation reached 4.2% in May, the highest reading since April 2023, while core inflation held at 2.9% earlier this month. In a separate note, he highlighted plans by Kevin Warsh to revamp Federal Reserve communication, with a potential reversal of forward guidance on rates expected this June according to his recent coverage. These updates add to the ongoing tracking of major economic indicators.