By CryptoNewsHub Staff | 14 November 2025 — 09:02 CET— Europe

China reported a 2.9% year-on-year increase in retail sales for October, according to new data released Friday by the National Bureau of Statistics (NBS). The figure slightly surpassed market expectations and came just below September’s 3% gain, offering a cautiously positive sign that consumer activity is stabilising despite broader economic headwinds.

Retail performance differed across regions. Urban consumer goods sales rose 2.7%, reflecting modest spending in major cities still grappling with weak confidence and slower income growth. Rural retail sales grew more robustly at 4.1%, supported by stronger agricultural demand and government-led rural consumption programmes.

The October data adds to signs that China’s consumer sector—long considered a critical pillar for sustainable growth—is recovering but still far from its pre-pandemic dynamism. Analysts note that while retail sales are moving in the right direction, growth remains shallow compared to the double-digit expansions seen during China’s boom years. Persistent challenges—including a weak property market, uncertain job prospects for younger workers, and cautious household savings behaviour—continue to weigh on domestic demand.

Beijing has rolled out targeted measures in recent months, including VAT reductions for small businesses, incentives for trade-in purchases of home appliances, and support for service-sector industries. However, economists warn that a more significant boost to consumer sentiment may require stronger policy intervention or clearer signs of income growth.

The coming months will determine whether October’s performance marks the beginning of a sustained recovery or simply a temporary stabilisation. Markets will be watching November and December data closely, especially as year-end shopping festivals and winter travel season approach.

© 2025 CryptoNewsHub. All rights reserved.

Written for CryptoNewsHub — delivering real-time economic and market insights without ads or noise.