China’s factories felt the pinch from tariffs in May, despite a trade truce with Washington, as real-estate woes weighed on investment. Growth in industrial production slowed to 5.8% in the first five months of the year.

China’s domestic consumption surprisingly jumped as the economy rode out the tariff rollercoaster in May, offering a confidence boost to Beijing as it stares down the threat of a prolonged trade war with the US.

China's factory output growth hit a six-month low in May, while retail sales picked up steam, offering temporary relief for the world's second-largest economy amid a fragile truce in its trade war with the United States.