ECONOMY

China’s Retail Sales Growth Accelerates to 1.1%

Published: Oct. 19, 2026 6:16 p.m. GMT+8

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China’s retail sales growth accelerated to 1.1% year-on-year in September, beating market expectations as holiday spending and surging telecommunications equipment sales helped offset a deepening slump in auto purchases.

The figure, released Monday by the National Bureau of Statistics, exceeded the 0.7% average forecast in a Caixin survey of 10 institutions. The increase was also partly due to a slightly lower comparison base in September 2025.

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China's September retail sales grew 1.1% year-on-year, beating the 0.7% forecast; month-on-month rose 0.35%.
Auto sales fell 21.2% year-on-year, a key drag, while telecom equipment sales surged 31.1%.
Catering revenue grew 2.1%, accelerating from August as Mid-Autumn Festival boosted dining and travel demand.

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Explore the story in 3 minutes

1. China's retail sales growth accelerated to 1.1% year-on-year in September, exceeding market expectations. The increase was driven by holiday spending and a surge in telecommunications equipment sales, which helped offset a deepening slump in auto purchases. [para. 1]

2. The figure, released by the National Bureau of Statistics, surpassed the 0.7% average forecast in a Caixin survey of 10 institutions. The acceleration was partly attributed to a slightly lower comparison base from the corresponding period in the prior year, making the year-on-year growth appear stronger. [para. 2]

3. On a seasonally adjusted month-on-month basis, retail sales rose 0.35% in September, recovering from a decline recorded in August. This indicates a rebound in consumer spending momentum on a shorter-term basis. [para. 3]

4. Auto sales remained a key drag on overall retail performance, falling 21.2% year-on-year last month. This decline was attributed to the lingering effects of earlier trade-in subsidies and purchase tax incentives, which had pulled forward demand and left a weaker comparison for the current period. [para. 5]

5. By contrast, telecommunications equipment sales surged 31.1% year-on-year, driven by new product launches and rising prices for consumer electronics. This segment provided a strong counterbalance to the weakness in the auto sector. [para. 6]

6. Catering revenue grew 2.1% in September, accelerating from the previous month. This improvement reflects the timing of the Mid-Autumn Festival, which fell in September this year, concentrating demand for dining out and travel activities during the holiday period. [para. 7]

7. The data, accompanied by a chart showing retail sales growth trends, illustrates the diverging performance across sectors: while consumer electronics and catering benefited from seasonal and product-cycle factors, auto sales continued to suffer from demand exhaustion following earlier incentive programs. [para. 4][para. 5][para. 6]

AI generated, for reference only

What Happened When

August 2026：: Retail sales declined on a seasonally adjusted month-on-month basis.

September 2025：: A slightly lower comparison base contributed to the September 2026 increase.

Monday：: The National Bureau of Statistics released the September 2026 retail sales figure.

September 2026：: China's retail sales growth accelerated to 1.1% year-on-year, beating market expectations.

September 2026：: Auto sales fell 21.2% year-on-year, remaining a key drag.

September 2026：: Telecommunications equipment sales surged 31.1%.

September 2026：: Catering revenue grew 2.1%, accelerating from August 2026.

AI generated, for reference only

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