What: The retail scene in China shows some slow down.

Why it is important: Online grows, which suggests that the market is turning increasingly domestic. Rich pre-pandemic Chinese tourists are a memory for now.

China's retail sales growth slowed in June, with a modest increase of 2% compared to May's 3.7% rise, falling short of the forecasted 3.3% growth, according to the National Bureau of Statistics (NBS). This downturn reflects broader economic challenges, including a persistent property slump, rising local government debt, and subdued private-sector spending. On a month-to-month basis, retail sales even saw a slight decline of 0.12%.

For the first half of the year, total retail sales of consumer goods rose by 3.7% year-on-year to 23,596.9 billion yuan (approximately US$3.2 trillion). This growth was segmented into a 3.2% increase in the retail sales of goods and a 7.9% rise in catering sales. Additionally, online retail sales saw a significant boost, up 9.8%, and retail sales of services increased by 7.5% during the same period. These figures highlight the uneven recovery and ongoing economic pressures facing China's retail sector.

China retail sales growth slumps unexpectedly