CN: Retail Sales

Wed Oct 18 21:00:00 CDT 2017

Consensus Actual Previous Revised
Y/Y % Change 10.1% 10.3% 10.1%
M/M % Change 0.9% 0.76% 0.73%

Chinese retail sales grew 10.3 percent on the year in September, up from 10.1 percent in August and above the consensus forecast of 10.1 percent. Growth remains somewhat weaker than that recorded earlier in the year. Retail sales advanced 0.9 percent on the month in September after an increase of 0.73 percent in August.

The pick-up in headline retail sales growth in September reflects stronger year-on-year growth in spending on household non-durables, up from 7.0 percent to 7.8 percent, and on building and decoration materials, up from 8.8 percent to 9.5 percent. Growth in spending on oil and oil products also picked up from 4.5 percent to 8.5 percent on the year. This was partly offset by weaker year-on-year growth in sales of clothing, down from 8.9 percent to 6.2 percent, and communications equipment, down from 12.2 percent to 3.8 percent.

Year-on-year growth in urban retail sales picked up from 9.9 percent in August to 10.1 in September, while rural retail sales growth was unchanged at 11.5 percent.

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.