Malaysia's retail sales increased 6.4% year over year in July, according to data from the Department of Statistics Malaysia (DOSM) on Friday.

The growth pace marked the softest in three months, easing from the 6.6% expansion in June. It missed Trading Economics' forecast of 7% growth.

The sector's sustained increase was driven by a 7.2% increase in non-specialized store sales, a 7.6% jump in retail sales of other goods in specialized stores, and a 3.1% growth in retail sales of other household equipment in specialized stores.

Elsewhere, wholesale trade was up 11.7% in July, while motor vehicle sales edged up 7.9%.

Total wholesale and retail trade sales combined reached 170.5 billion ringgit, reflecting a year-over-year increase of 9%.