In general, China's economy is still in the path from a rapid recovery to a smooth development.

In May, investment in fixed assets and industrial production continued to fall, and consumption remained stable. The price index rose slightly as a result of the base period effect.

Previously released macroeconomic indicators --5 and HSBC Manufacturing Purchasing Managers Index (PMI) both fell. Most of the sub index declined, indicating that the economic slowdown is widespread. In the official PMI sub item, the new order index fell more than the new export orders index, indicating that the new deal in real estate may have slowed investment, thus weakening domestic demand.

However, due to the lag of consumption, the total retail sales of social consumer goods will continue to grow steadily in May. Although the real estate market has been severely regulated, the subsequent consumer demand brought by strong housing sales in the first quarter will sustain consumption growth.

In terms of price, the consumer price index (CPI) in May continued to rise year by year, and the warning line for the first time reached 3% in one and a half years.

However, official statistics showed that food prices declined in May as vegetable and pork prices continued to decline.

Domestic prices of raw materials also dropped due to a sharp pullback in international commodity prices in the wake of the European crisis.

However, considering that there is a lag in the price response of raw materials in the downstream processing industrial prices (PPI), and the base last year was relatively low, the growth rate of PPI in May was still high.

Market impact:

Due to the gradual emergence of the domestic stringent regulatory measures against the real estate market and the fall in external demand caused by the European sovereign debt crisis, the main concern of the domestic market has shifted from "inflation" to "growth". If the growth rate of industrial added value in May is much lower than expected, it may aggravate the market's worries about China's future economic growth prospects.

If CPI is significantly higher than the median forecast in May, the market's fears of further tightening of liquidity may be reappearing. The pressure on the stock market to.3% is usually the watershed of the central bank's decision to raise interest rates, and the price index has increased for three consecutive months higher than the one-year deposit and loan benchmark interest rate.