Chinese retail sales rose 5.9 percent on the year in March, up from growth of 4.0 percent in January and February combined and well above the consensus forecast of 4.2 percent. In month-over-month terms, retail sales rose 0.58 percent in March.

In their statement accompanying today's data, officials characterised the data as showing the economy was off to a good start" in 2025. Although officials did not explicitly refer to the recent escalation in global trade tensions and market volatility, they cautioned that the external environment is"complex and severe" and that drivers of domestic demand remain insufficient". Although they again pledged to"implement more proactive and effective macro policies", officials provided no specific guidance about whether additional changes to policy settings will be considered in the near-term.

Data published today were generally stronger than consensus forecasts. The China's RPI fell from plus 57 to plus 37 while the RPI-P fell from plus 100 to plus 72, indicating that recent Chinese data in sum are still coming in well above consensus forecasts.

Annual sales growth expected at 4.2 percent in March versus 4.0 percent in February.

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.