China retail sales sink for first time since Covid

Live updates

1. 6d ago

   China retail sales collapse for first time since Covid as spending craters

   China’s retail sales fell 0.6% year-on-year in May 2026, marking the first decline since December 2022. Weak demand for big-ticket and discretionary items—including a 16.1% drop in auto sales—drove the downturn, despite a Labor Day holiday boost. Some sectors like beverages and medicines saw gains, but overall consumer spending remains under pressure. The decline deepens concerns over China’s economic recovery post-pandemic.

   What's confirmed:

   • China’s retail sales fell 0.6% year-on-year in May 2026, the first decline since December 2022, following a 0.2% gain in April.
   • Automobile sales plunged 16.1% year-on-year, while home appliances and audiovisual equipment dropped 15.6%, building materials 13.6%, and furniture 8.7%.
   • Sales of beverages rose 6.1%, tobacco and alcohol 4.8%, medicines 4.0%, clothing 3.8%, and cosmetics 2.5%, while catering revenue grew 0.6%.
   • Retail sales excluding automobiles increased 1.1%, but overall retail sales of goods fell 0.7% year-on-year.
   • On a monthly basis, retail sales fell 0.4% in May, following a 0.6% decline in April.
   • For January–May 2026, retail sales increased 1.4% year-on-year, masking the May downturn.

   Still unconfirmed:

   • Auto and appliance spending 'crashed by double digits' (source: single claim, no specific figures provided).
   • Consumer spending slowdown is 'imperiling growth' (source: single claim, no additional data).
   confidence 98%