CN: Retail Sales

Mon Nov 13 20:00:00 CST 2017

Consensus Actual Previous Revised
Y/Y % Change 10.4% 10.0% 10.3%
M/M % Change 0.74% 0.9% 0.89%

Chinese retail sales grew 10.0 percent on the year in October, down from 10.4 percent in September and falling short of the consensus forecast of 10.4 percent. This is the slowest growth seen since February. Retail sales rose 0.74 percent on the month in October after an increase of 0.89 percent in September.

The drop in headline retail sales growth in October was driven by big-ticket items and spending associated with the housing sector. Year-on-year growth fell from 7.9 percent to 6.9 percent for automobiles, from 3.8 percent to 2.1 percent for communication equipment, from 15.5 percent to 10.0 percent for furniture, and from 6.8 percent to5.4 percent for home appliances. This was partly offset by stronger year-on-year growth in sales of clothing, up from 6.2 percent to 8.0 percent, and grain and food oil, up from 8.0 percent to 10.1 percent.

Year-on-year growth in urban retail sales slowed from 10.1 in September to 9.8 percent in October, while rural retail sales growth fell from 11.5 percent to 11.3 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.