China's Shoppers Pull Back as Property Crisis Bites

New data shows China's retail sales growth slowed sharply in April. This is a clear sign that weak consumer confidence is now holding back the country's economic recovery. The key measure of consumer spending grew at only 2.3% compared to last year. This is much slower than the 3.1% growth experts predicted and marks a significant drop from March. Economists point to the ongoing crisis in the property market as the main cause. Falling home prices and problems with developers have made Chinese households cautious about spending. Many families keep their money for savings or to pay debts instead. The slowdown in spending adds pressure on China's leaders. They are trying to shift the economy's focus away from construction and exports and toward domestic consumption. The latest numbers suggest this shift is facing major challenges. Other economic figures for April were also weak. Growth in factory output and investment in fixed assets, like machinery, both missed forecasts. The overall urban unemployment rate remained steady at 5.0%.