Global shopping
Retail sales momentum is uneven across regions. The US continues to lead with growth of between 4% and 5%, supported by a strong labor market and rising equity prices boosting the wealth effect. Europe lags, with modest growth near 3%, as consumers remain price-sensitive amid lingering cost-of-living pressures and a pickup in inflation. China had seen a sharp rebound in 2025 peaking near 6% before moderating, driven initially by policy support. But lately confidence remains fragile and the property market is not making a sufficient recovery yet. Japan stands out for its volatility, with growth turning negative mid-2025 before stabilizing and recently trending upward. Inflation remains a key swing factor: a US-Iran ceasefire and broader reopening of the Strait of Hormuz is pushing energy prices down. Meanwhile, rising financial wealth – particularly in AI-driven equity markets – is increasingly underpinning discretionary spending.
Source: Eurostat, US Census Bureau, China National Bureau of Statistics, Japan Ministry Economy Trade and Industry, June 2026.