China Retail Sales YoY

China’s retail sales grew 3.4% year-on-year in August 2025, easing from 3.7% in the previous month and falling short of market expectations of 3.8%. It was the slowest pace since November 2024 and the third consecutive month of deceleration, as the boost from the consumer trade-in program lost momentum in several sectors. Sales growth weakened notably for grain, oil, and food (5.8% vs 8.6% in July), household appliances (14.3% vs 28.7%), and furniture (18.6% vs 20.6%). Turnover also fell further for petroleum and related products (-8.0% vs -8.3%) and building and decoration materials (-0.7% vs -0.5%). In contrast, demand strengthened for clothing, shoes, hats, and textiles (3.1% vs 1.8%), as well as cultural and office supplies (14.2% vs 13.8%). Auto sales also rebounded, up 0.8% after a 1.5% drop in July. Over the first eight months of the year, retail trade expanded by 4.6% compared with the same period of 2024.