FX.co ★ China Retail Sales Fall for First Time Since 2022

China’s retail sales fell 0.6% year-on-year in May 2026, marking the first decline since December 2022 and reversing a 0.2% gain in April, contrary to expectations for a flat reading. Consumer spending remained subdued, especially on discretionary and big-ticket items, with automobile sales dropping 16.1%.

Significant contractions were also seen in sales of home appliances and audiovisual equipment (-15.6%), building and decoration materials (-13.6%), gold and silver jewelry (-8.9%), furniture (-8.7%), and sports and entertainment products (-8.0%).

By contrast, several categories posted gains: beverages (6.1%), tobacco and alcohol (4.8%), Chinese and Western medicines (4.0%), clothing, footwear, and textiles (3.8%), and cosmetics (2.5%).

By segment, catering revenue edged up 0.6%, while retail sales of goods declined 0.7%. Retail sales excluding automobiles rose 1.1%. On a month-on-month basis, total retail sales fell 0.4% in May, following a 0.6% drop in April. For the January–May period, retail sales were up 1.4% year-on-year.