China Retail Sales Growth Slows More Than Expected

China’s retail sales rose 1.7% year-on-year in March 2026, slowing from a 2.8% increase in the January–February period and falling short of market expectations of a 2.3% gain. The moderation reflected softer consumer demand and uneven category performance, with strength in communication equipment (27.3%), cultural and office supplies (15.0%), gold and silver jewelry (11.7%), and food-related items partly offset by weakness in big-ticket goods, including automobiles (-11.8%), home appliances (-5.0%), and furniture (-8.7%). By segment, services continued to outperform goods, as catering revenues rose 2.9% versus a 1.5% gain in retail goods. Meanwhile, retail sales excluding automobiles performed better, rising 3.2% in March, highlighting underlying resilience in non-auto consumption. On a monthly basis, retail sales increased 0.2%, easing from a 0.5% rise in February.

China's retail sales rose 2.8% year-on-year in the first two months of 2026, accelerating from a 0.9% gain in December and exceeding market expectations of a 2.5% rise. This marked the strongest growth since last October, partly boosted by the Lunar New Year holiday in mid-February. The extended holiday fueled a steady surge in consumer spending nationwide, from hotel reservations to duty-free purchases. Sales increased sharply for grains, oil, and food products (10.2% vs 3.9% in December) and clothing, footwear, and textiles (10.4% vs 0.6%). Trade also rebounded for home appliances and audio-visual equipment (3.3% vs -18.7%) and tobacco and alcohol (19.1% vs -2.9%), while it declined moderately for petroleum and related products (-9.7% vs -11%). Meanwhile, sales continued to fall for automobiles (-7.3% vs -5%). China merges retail sales data for January and February to account for the varying timing of the Lunar New Year each year, ensuring a more consistent and accurate comparison.

China's retail sales rose 0.9% year-on-year in December 2025, slowing from a 1.3% increase and missing market expectations of a 1.2% gain. It marked the weakest growth since December 2022, as a soft jobs market and falling home prices continue to weigh on consumer spending. Sales growth moderated for grains, oil, and food products (3.9% vs 6.1% in November), clothing, footwear, and textiles (0.6% vs 3.5%), Chinese and Western medicines (1.2% vs 4.9%), and cultural and office supplies (9.2% vs 11.7%). In addition, petroleum and related products fell 11%, compared with an 8% decrease in the previous month. On the other hand, communication equipment sales picked up slightly (20.9% vs 20.6%), while declines in automobiles (-5% vs -8.3%), home appliances and audio-visual equipment (-18.7% vs -19.4%), and tobacco and alcohol (-2.9% vs -3.4%) eased. On a monthly basis, retail sales fell 0.12%, easing from a 0.41% drop in the previous month.