China’s retail sales growth slowed more than expected in July, adding to signs of weaker domestic momentum as industrial production lost pace and fixed-asset investment contracted further.
Retail sales increased just 0.6% from a year earlier, down from 1% in June and well below expectations for a 1.5% gain, according to data released Monday by China’s National Bureau of Statistics.
Weakness was particularly pronounced in several big-ticket categories. Automobile sales fell 17% from a year earlier, while furniture sales declined 8.8%, building materials dropped 14.2% and petroleum-product sales decreased 7.6%. Excluding automobiles, retail sales increased 2.5%.
The consumption data were accompanied by softer readings elsewhere in the economy. Industrial production expanded 4.5% year over year in July, slowing from 5.3% in June and missing expectations for 4.8% growth.
Fixed-asset investment declined 6.7% during the first seven months of 2026 compared with the same period a year earlier, deepening from a 5.7% contraction during the January-to-June period.
The July figures point to continued unevenness in China’s economy, with domestic consumption and investment remaining under pressure despite resilience in other areas of activity.
