China’s retail sales fell -0.14% MoM, the 2nd straight monthly decline, but were up +3.7% YoY (vs 4.6% YoY expected) in July 2025. The monthly decline was led by weakness in spending on autos and petroleum products.

• Urban sales grew +3.6% YoY, while rural sales rose +3.9%.
• Online physical goods sales increased +6.3% YoY, accounting for 24.9% of total retail sales; food (+14.7%), clothing (+1.7%), and use goods (+5.8%) all gained.
• Strongest category gains: household appliances (+28.7%), furniture (+20.6%), communication devices (+14.9%), and recreation goods (+13.7%).
• Petroleum products (-8.3% YoY), autos (-1.5%), and building materials (-0.5%) saw declines.