CN: Retail Sales


Tue Nov 10 23:30:00 CST 2015

Consensus Actual Previous
Y/Y % Change 10.9% 11.0% 10.9%
M/M % Change 0.83% 0.89%

Highlights
October retail sales were up slightly more than expected 11.0 percent from a year ago and the fastest pace since December 2014. For the 10 months through October, sales were up 10.6 percent compared with 12.0 percent for the same 10 months in 2014. On the month, retail sales were up 0.83 percent after 0.87 percent in September. Urban sales were up 10.8 percent while rural sales increased 12.2 percent.

Auto sales improved to an increase of 7.1 percent after rising a poor 2.7 percent in September. Household nondurables increased 10.1 percent after adding 8.8 percent last time. Home appliances however, were up 7.1 percent after 11.3 percent in September. Grain & food oil sales were up 16.7 percent after jumping 19.6 percent last time. Communication equipment was up 36.6 percent after 42.2 percent in September.

Definition
Retail sales are sales of a physical commodity or the income of catering services sold or provided by enterprises to individuals and social organizations for non-production and non-operation purposes.

Description
Retail sales tend to have a muted impact because the Chinese economy is not heavily reliant on consumer spending. However, the government is trying to stimulate consumer spending to give the economy more balance. To this end, the government put into place a basket of stimulus measures, including government subsidies and tax breaks for home appliances and cars, to expand consumption to sustain the economic growth, which was slowed by a slump in exports amid the global economic downturn.