June data showed a split economy: industrial production rose 5.3% year on year, retail sales increased 1.0%, and urban fixed-asset investment fell 5.7% year to date in the first half.
Retail sales returned to growth from May’s 0.6% contraction and beat expectations for a 0.1% decline, but the rebound remained modest.
Industrial output was supported by AI-driven factory upgrades that lifted throughput, cut downtime and reduced waste, helping manufacturing outperform weaker domestic demand.
Consumer spending still faces pressure from falling property prices, which are eroding household wealth, and from a soft jobs market that could be further strained by AI replacing some labor.
The June figures point to an economy driven more by production upgrades than by broad-based consumption or investment recovery.