| Actual | Previous | Consensus | |
|---|---|---|---|
| Month over Month | 0.03% | 0.26% | |
| Year over Year | 2.3% | 3.1% | 3.7% |
Highlights
Chinese retail sales rose 2.3 percent on the year in April, slowing from 3.1 percent in March. In month-over-month terms, retail sales rose 0.03 percent in April after advancing 0.26 percent in March.
Officials characterised monthly data published today as showing that"the national economy was generally stable and continued to rebound and progress well". Although they acknowledged growth in some indicators moderated, they attributed this to the impact of lunar new year holidays and base effects. Officials also warned, however, that"the external environment is becoming more complex, severe and uncertain" and that the domestic economy still faces"multiple difficulties and challenges". They noted that they will seek to"frontload and effectively implement" macroeconomic policies that have already been introduced, suggesting that they do not yet see a case for a major shift in policy settings.
Monthly activity data published today were weaker than expected, with retail sales growth falling short of the consensus forecast for year-over-year growth of 3.7 percent. China's RPI fell from plus 29 to minus 21 and the RPI-P fell from plus 40 to minus 30, indicating that recent Chinese data in sum are now coming in below consensus forecasts.
Officials characterised monthly data published today as showing that"the national economy was generally stable and continued to rebound and progress well". Although they acknowledged growth in some indicators moderated, they attributed this to the impact of lunar new year holidays and base effects. Officials also warned, however, that"the external environment is becoming more complex, severe and uncertain" and that the domestic economy still faces"multiple difficulties and challenges". They noted that they will seek to"frontload and effectively implement" macroeconomic policies that have already been introduced, suggesting that they do not yet see a case for a major shift in policy settings.
Monthly activity data published today were weaker than expected, with retail sales growth falling short of the consensus forecast for year-over-year growth of 3.7 percent. China's RPI fell from plus 29 to minus 21 and the RPI-P fell from plus 40 to minus 30, indicating that recent Chinese data in sum are now coming in below consensus forecasts.
Market Consensus Before Announcement
After rising a year-over-year 3.1 percent in March, which was well short of expectations for 5.0 percent, retail sales in April are expected to rise 3.7 percent.
Definition
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.
Description
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.
