FX.co ★ China Retail Sales Hit 3-Year Low

In December 2025, China's retail sales experienced a year-on-year increase of 0.9%, a slowdown from the previous month's 1.3% rise and below the anticipated 1.2% growth rate. This represented the most modest growth since December 2022, as sluggish employment conditions and declining real estate values continue to suppress consumer expenditure. Sales saw reduced growth across several categories: grains, oil, and food products saw an increase of 3.9%, down from November's 6.1%; clothing, footwear, and textiles grew by 0.6%, compared to 3.5% previously; Chinese and Western medicines rose by 1.2%, down from 4.9%; and cultural and office supplies increased by 9.2%, compared to 11.7% earlier. Additionally, there was an 11% decrease in petroleum and related products, following an 8% decline in the prior month. Conversely, sales for communication equipment saw a slight uptick, growing by 20.9% compared to 20.6% in November. Declines moderated in sectors such as automobiles (falling by 5% compared to 8.3%), home appliances and audio-visual equipment (down 18.7% compared to 19.4%), and tobacco and alcohol (a decline of 2.9% compared to 3.4%). On a month-to-month basis, retail sales decreased by 0.12%, a reduction from the prior month's 0.41% decline.