FX.co ★ China Retail Sales Growth Unexpectedly Slows

China’s retail sales grew 0.6% year-on-year in July 2026, slowing from 1.0% in June and missing market expectations for a 1.5% increase. Weak demand for big-ticket items continued to drag on overall consumption: automobile sales slumped 17.0%, petroleum products dropped 7.6%, furniture fell 8.8%, and building materials declined 14.2%.

In contrast, several discretionary and consumer staples categories posted solid gains. Sales of communication equipment surged 20.4%, tobacco and alcohol climbed 6.0%, cosmetics advanced 6.8%, and food products rose 5.3%. By category, catering revenue increased 1.4%, while retail sales of goods were up 0.5%. Online retail sales of goods expanded 4.6% in the first seven months of the year.

On a month-on-month basis, retail sales edged up 0.06% in July, moderating from a 0.35% increase in the previous month. Over the January–July period, total retail sales rose 1.2%, while sales excluding automobiles grew 2.7%.