Chinese retail sales rose 0.93% MoM and 6.4% YoY in May, up from 5.1% YoY in April and well above expectations of a 5.0% YoY increase.

• Urban retail sales rose 6.5% YoY in May vs. 5.4% YoY in rural areas; YTD growth was 5.1% and 4.9%, respectively.
• Goods sales rose 6.5% YoY in May while catering revenue increased 5.9% YoY.
• Household appliances (+53.0% YoY), cultural office supplies (+30.5% YoY), and communication equipment (+33.0% YoY) led category growth.
• Petroleum product sales fell -7.0% YoY and auto sales grew just 1.1% YoY in May.
• Online physical goods retail rose 6.3% YTD and now accounts for 24.5% of total retail sales.
• Several categories saw strong growth in May, leading to the fastest annual increase in retail spending since December 2023.