China’s retail sales rose just 0.2% year-on-year in April 2026, slowing sharply from a 1.7% increase in March and well below the expected 2.0% gain. This marked the weakest growth since December 2022, as the fallout from the Iran war dampened consumer demand. Broad weakness was seen in big-ticket purchases, with automobile sales plunging 15.3%, while home appliances (-15.1%), building materials (-13.8%), and furniture (-10.4%) also posted steep declines. These were partly offset by gains in tobacco and alcohol (11.7%), communication equipment (6.2%), grains, oils, and food products (4.1%), and cosmetics (4.7%). By segment, services continued to outperform goods, as catering revenues rose 2.2% while retail goods sales edged down 0.1%. Meanwhile, retail sales excluding automobiles increased 1.8%. On a monthly basis, retail sales fell 0.5% after a 0.1% decline in March. For the January–April period, retail sales increased 1.9%.