| Actual | Previous | Consensus | Consensus Range | |
|---|---|---|---|---|
| Month over Month | 0.93% | 0.24% | ||
| Year over Year | 6.4% | 5.1% | 4.9% | 4.3% to 5.0% |
Highlights
Chinese retail sales rose 6.4 percent on the year in May, accelerating from growth of 5.1 percent in April and well above the consensus forecast of 4.9 percent. In month-over-month terms, retail sales rose 0.93 percent in May after an increase of 0.24 percent in April.
In their statement accompanying today's data, officials characterised the data as showing the economy maintained stability, with steady growth in production and demand. Officials again cited many unstable and uncertain factors in the external environment, reinforcing their urgency to develop domestic sources of demand in order to deliver a more sustainable economic recovery. 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.
Activity data published today were mixed relative to consensus forecasts, with retail sales stronger and industrial production and fixed asset investment somewhat stronger. The China's RPI rose from minus 21 to minus 7 while the RPI-P rose from minus 30 to minus 10, indicating that recent Chinese data in sum are still coming in just below consensus forecasts.
In their statement accompanying today's data, officials characterised the data as showing the economy maintained stability, with steady growth in production and demand. Officials again cited many unstable and uncertain factors in the external environment, reinforcing their urgency to develop domestic sources of demand in order to deliver a more sustainable economic recovery. 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.
Activity data published today were mixed relative to consensus forecasts, with retail sales stronger and industrial production and fixed asset investment somewhat stronger. The China's RPI rose from minus 21 to minus 7 while the RPI-P rose from minus 30 to minus 10, indicating that recent Chinese data in sum are still coming in just below consensus forecasts.
Market Consensus Before Announcement
The consensus sees sales growth from a year ago slowing to 4.3 percent in May from 5.1 percent in April.
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.
