Chinese retail sales grew 2.7 percent year-on-year to CNY 3.78 trillion (USD 528.82 billion), a slight improvement on the 2 percent growth posted in June.
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Excluding cars, retail sales picked up to 3.6 percent year-on-year in July, from 3 percent in June.
In July, China retail sales in urban areas grew 2.4 percent to CNY 3.27 trillion, while retail sales in rural areas increased 4.6 percent to CNY 506.6 billion, according to the National Bureau of Statistics.
By channel, online sales of physical goods increased 8.7 percent, accounting for 25.6 percent of total retail sales during the period.
By category, restaurant revenue grew by 3 percent, and catering revenue reached 440.3 billion yuan in July, increasing 3 percent year-on-year. Retail sales of sports and entertainment goods increased by 10.7 percent, boosted by sports events such as the 2024 Paris Olympic Games and consumers’ growing leisure consumption.
Sales of beverages grew 6.1 percent and communication equipment increased 12.7 percent. However, sales shrank 0.1 percent for tobacco and alcohol, and furniture fell 1.1 percent. Clothes, shoes, hats and textiles contracted 5.2 percent, cosmetics fell 6.1 percent, and household appliances and audio-video equipment were down 2.4 percent.
During the first seven months, retail sales rose 3.5 percent year on year to over 27.37 trillion yuan.
China’s online retail sales went up 9.5 percent year on year during the first seven months, boosted by sales promotions and new e-commerce models.
A bright spot for the 7-month period was services consumption, with retail sales of services expanding 7.2 percent.
In addition to retail sales, China’s industrial output increased 5.9 percent year-on-year in the first seven months, and fixed-asset investment increased 3.6 percent from a year ago.
A faltering real estate market and high unemployment rate, alongside extreme weather and weak local demand are challenges facing the economy.
Looking ahead, the government in Beijing has set a growth target for 2024 of 5 percent – a figure analysts consider out of reach in the absence of tax cuts, spending increases and measures to help the property market.