FX.co ★ China Retail Sales Growth Misses Forecasts

In June 2025, China's retail sales saw a year-on-year growth of 4.8%, a deceleration from the previous month's high of 6.4%, and fell short of the anticipated 5.6% increase. This figure represents the most sluggish growth recorded since February, highlighting a notable slowdown in several categories. Sales of gold and silver jewelry grew by just 6.1%, a significant reduction from May's 21.8%. Likewise, the growth in sports and entertainment sales dropped to 9.5% from 28.3%, and household appliances, along with audio-visual equipment, saw growth fall to 32.4% from 53%. Cultural and office supplies experienced a decline, growing 24.4% compared to May's 30.5%, while communication equipment sales increased by 13.9%, down from 33%. Notably, the sales of grain, oil, and food grew by 8.7%, a decrease from the previous 14.6%. In contrast, some sectors experienced a downturn, with beverage sales falling by 4.4% compared to a slight rise of 0.1% earlier. Tobacco and alcohol sales decreased by 0.7%, down from an 11.2% growth rate, cosmetics saw a decline of 2.3% compared to the prior 4.4% increase, and both Chinese and Western medicine sales slid by 0.7%, against a previous growth of 0.3%. Conversely, automotive sales showed a positive trend, accelerating to 4.6% from 1.1%. On a monthly basis, retail activity declined by 0.16% in June, following a 0.69% rise in the preceding month. Reviewing the first half of the year, the retail sector expanded by 5% relative to the same period in the previous year.