CN: Retail Sales

Wed Dec 13 20:00:00 CST 2017

Consensus Actual Previous Revised
Y/Y % Change 10.3% 10.2% 10.0%
M/M % Change 0.83% 0.74% 0.77%

Chinese retail sales grew 10.2 percent on the year in November, up from 10.0 percent in October and just short of the consensus forecast of 10.3 percent. Retail sales rose 0.83 percent on the month in November after an increase of 0.77 percent in October.

Stronger headline retail sales growth in November was largely driven by communication equipment, sales of which surged 33.9 percent on the year after growth of just 2.1 percent in October. Sales growth also accelerated for clothing, furniture, household non-durables, home appliances, and oil and oil products. This was partly offset by weaker year-on-year growth in automobile sales, down from 6.9 percent t to 4.2 percent.

Year-on-year growth in urban retail sales advanced 9.8 percent in October to 9.9 percent in November, while rural retail sales growth rose from 11.3 percent to 11.7 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.