FX.co ★ China Retail Sales Growth Slows More Than Expected

China’s retail sales grew 1.7% year-on-year in March 2026, down from a 2.8% expansion in the January–February period and below market expectations for a 2.3% increase. The slowdown signals softer consumer demand despite ongoing policy support. Excluding automobiles, retail sales were more robust, rising 3.2% in March and underscoring greater resilience in non-auto consumption. By segment, catering revenues rose 2.9%, outpacing the 1.5% gain in goods sales, which points to a continued recovery in services-related spending. Performance, however, remained uneven across categories. Sales of communication equipment (27.3%), cultural and office supplies (15.0%), gold and silver jewelry (11.7%), and food-related items posted solid gains, while automobiles (-11.8%), home appliances (-5.0%), and furniture (-8.7%) all recorded declines, highlighting persistent weakness in big-ticket purchases.