CN: Retail Sales

January 19, 2017 08:00 CST

Consensus Actual Previous
Y/Y % Change 10.8% 10.9% 10.8%
M/M % Change 0.89% 1.0%

December retail sales were up 10.9 percent on the year after increasing 10.8 percent in November. Expectations were for an increase of 10.8 percent. On the month, sales were up 0.89 percent after rising 0.98 percent in November. Urban retail sales were up 10.9 percent while rural sales were 11.2 percent higher. All categories of retail sales increased on the year.

Retail sales improved for clothing, household nondurables, cosmetics, autos and oil & oil products. Sales slowed for home appliances and communications equipment.

Retail Sales measure goods that are sold to the consumer or end-user, generally in small quantities and in the state in which they were purchased by the retailer. China's retail sales are reported monthly. The critical value is the change from the same month in the previous year.

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.