China’s economic expansion slowed in April amid weakening momentum.

China’s industrial output rose 4.1% year-on-year in April, marking the slowest pace of growth in nearly three years, after a 5.7% increase in the previous month and falling well short of expectations for a 6.0% expansion.

Retail sales, a key measure of consumer spending, also disappointed sharply, rising by only 0.2% in April, the weakest increase in three and a half years. This followed a 1.7% gain in March and missed forecasts for a 2.0% rise by a wide margin.

However, Beijing’s domestic fuel price controls and resilient export activity helped cushion part of the economic pressure stemming from elevated energy costs, although the outlook remains uncertain if tensions in the Middle East continue to weigh on factory activity and household consumption.

The latest data signaled that the strong momentum seen in China’s first-quarter economic growth may be losing steam, despite some cautious optimism following US President Donald Trump’s state visit to China.

Talks between the two sides helped ease tensions between the world’s two largest economies, with agreements to expand agricultural trade through tariff reductions and address non-tariff barriers and market access concerns. Still, little meaningful progress has been achieved so far in broader trade and investment negotiations.

China’s economy grew by 5.0% in the first quarter, remaining within the government’s annual target range of 4.5% to 5.0%, though economists continue to warn that persistently weak domestic demand could create significant headwinds for future growth.