Chinese retail sales rose 18.4 percent on the year in April, accelerating from an increase of 10.6 percent in March but falling short of the consensus forecast of 22.0 percent. This strong year-over-year growth largely reflects the base effects of weakness 12 months earlier when major cities, including Beijing and Shanghai, were subject to strict lockdowns in response to Covid-19 outbreaks. Retail sales rose 18.6 percent on the year in urban areas and 17.3 percent in rural areas. In month-over-month terms, retail sales rose 0.49 percent in April after advancing 0.15 percent in March.

After rising a surprisingly robust 10.6 percent in March, year-over-year sales in April are expected to rise very sharply by 22.0 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.