Latest data shows surprise slowing in US, China economies as trade war escalates
CNBC - Wed 15 May 20:57 GMT

Both China and the U.S. reported weaker retail sales and industrial production for April, even before the latest escalation of the trade war.

Latest data shows surprise slowing in US, China economies as trade war escalates

  Consumer and industrial activity in both the U.S. and China slowed in April, even before the world's two biggest economies entered the latest phase of an escalating trade war that could take a bite out of global growth.

  Economists see about a 0.4 to 0.5% hit on China's GDP and about a 0.1% hit to the U.S. from the higher tariffs.

  Trump also threatened 25% tariffs on another $325 billion in Chinese goods, which economists say could hit Chinese sales and send prices higher for U.S. consumers.

  Economists had expected a 0.2% gain in the monthly sales data, which is important since it reflects the health of the consumer, about 70% of the U.S. economy.

  Leather said if Trump goes through with the next round of tariffs, they may end up being more harmful to U.S. consumers than to China, since many of the goods cannot be sourced elsewhere.