China Retail Sales Fall 0.6% in May as Domestic Demand Weakens
Updated
Updated · Marketing Interactive · Jun 25
China Retail Sales Fall 0.6% in May as Domestic Demand Weakens
3 articles · Updated · Marketing Interactive · Jun 25
Summary
China’s retail sales fell 0.6% year on year in May, the first annual decline since late 2022 and a reversal from April’s 0.2% rise.
4.109 trillion yuan in May sales was dragged down by a 0.7% drop in goods purchases, while catering growth slowed to 0.6%; excluding autos, sales still edged up 1.1%.
Urban demand drove the weakness, with May city sales down 0.9%, while rural sales still rose 1.5%; from January to May, total retail sales remained up 1.4% at 20.6 trillion yuan.
Online and necessity spending held up better than traditional stores: January-May e-commerce sales rose 5.9%, convenience stores gained 6.8%, while brand-exclusive stores slumped 7.6%.
The split underscores an uneven recovery in which China’s domestic consumption is softening even as the broader economy leans on strong exports.