0544 GMT - The weakening of China's activity data in April reflects both the negative impact of increased U.S. tariffs and still-soft domestic demand, Goldman Sachs economists say. Fixed asset investment and retail sales both missed consensus, while industrial production slightly beat. Retail sales growth cooled despite the consumer goods trade-in program, GS notes, though the services industry output index fared better. April's deceleration in IP growth is largely in line with slowing export growth, it adds. Output of smartphones and computers slumped, reflecting the impact of tariffs as these products account for a large share of China's exports to the U.S., it says. Despite the mixed April data, GS says its 2Q real GDP growth forecast of 5.0% appears to be on track. (fabiana.negrinochoa@wsj.com)

(END) Dow Jones Newswires

May 19, 2025 01:44 ET (05:44 GMT)

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