FX.co ★ China Retail Sales Growth at 8-Month Low

In August 2025, China's retail sales saw a year-on-year increase of 3.4%, down from July's 3.7% and below the anticipated 3.8%. This marked the slowest growth since November 2024 and represented the third straight month of deceleration as the effects of the consumer trade-in program waned across several sectors. Specifically, sales growth diminished significantly in categories such as grain, oil, and food, which grew by 5.8% compared to July's 8.6%; household appliances, which increased by 14.3% versus July’s 28.7%; and furniture, which saw an 18.6% rise compared to the previous 20.6%. Moreover, sales continued to decline for petroleum and related products, registering an 8.0% decrease following July's 8.3% dip, and for building and decoration materials, with a 0.7% drop compared to July's 0.5%. Conversely, there was an upswing in demand for clothing, shoes, hats, and textiles, with sales rising by 3.1% as opposed to 1.8%, and cultural and office supplies, which increased by 14.2% from 13.8%. Additionally, auto sales recovered, posting a 0.8% increase after experiencing a 1.5% decline in July. Overall, retail trade climbed by 4.6% in the first eight months compared to the same timeframe in 2024.