Chinese retail sales rose 10.6 percent on the year in March, accelerating from an increase of 3.5 percent on the year for January and February combined and above the consensus forecast of 7.0 percent. Separate year-over-year data for January and February are not published because of the impact of differences in the timing of lunar new year holidays from year to year. In month-over-month terms, retail sales rose 0.15 percent in March after falling 0.02 percent in February.

After rising 3.5 percent in the combined months of January and February, year-over-year sales in March are expected to rise 7.0 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.