Retail sales advanced by 2.3% year-on-year in April after increasing 3.1% in March. Economists expected retail sales to rise by 3.8%.

Fixed asset investments were up 4.2% year-on-year, year-to-date, after rising 4.5% in March. Economists projected fixed asset investments to increase by 4.6%.

In April, the unemployment rate unexpectedly fell from 5.2% to 5.0%.

The economic indicators signaled an improving demand environment across the manufacturing sector, aligning with recent Caixin Manufacturing PMI numbers.

In April, the Caixin Manufacturing PMI increased from 51.1 to 51.4. The April survey highlighted a surge in demand from overseas, with new orders rising at the most marked pace in almost three-and-a-half years.

However, the retail sales figures could signal a deterioration in demand from consumers despite tighter labor market conditions.