| Actual | Previous | Consensus | |
|---|---|---|---|
| Month over Month | 0.51% | 0.03% | |
| Year over Year | 3.7% | 2.3% | 3.0% |
Highlights
Chinese retail sales rose 3.7 percent on the year in May, picking up from growth of 2.3 percent in April. In month-over-month terms, retail sales rose 0.51 percent in May after advancing 0.03 percent in April.
Officials characterised monthly data published today as showing that the national economy"sustained the recovery momentum with stable growth" with"improvement in major indicators and rapid development of new growth drivers". Officials also again warned, however, that"the external environment is complex and severe" and that the domestic economy still faces"multiple difficulties and challenges". They again 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 mixed relative to consensus expectations, with retail sales growth stronger than the consensus forecast for year-over-year growth of 3.0 percent. China's RPI rose from zero to plus 7 and the RPI-P rose from zero to plus 10, indicating that recent Chinese data in sum are continuing to come in slightly on the high side of consensus ranges.
Officials characterised monthly data published today as showing that the national economy"sustained the recovery momentum with stable growth" with"improvement in major indicators and rapid development of new growth drivers". Officials also again warned, however, that"the external environment is complex and severe" and that the domestic economy still faces"multiple difficulties and challenges". They again 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 mixed relative to consensus expectations, with retail sales growth stronger than the consensus forecast for year-over-year growth of 3.0 percent. China's RPI rose from zero to plus 7 and the RPI-P rose from zero to plus 10, indicating that recent Chinese data in sum are continuing to come in slightly on the high side of consensus ranges.
Market Consensus Before Announcement
After much lower-than-expected growth of 2.3 percent in April, year-over-year sales in May are expected to rise by 3.0 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.
