Chinese retail sales rose 3.4 percent on the year in August, slowing from growth of 3.7 percent in July and below the consensus forecast of 3.8 percent. In month-over-month terms, retail sales rose 0.17 percent in August after dropping 0.14 percent in July.

In their statement accompanying monthly data published today, officials characterised the data as showing the economy"maintained a generally stable momentum with steady progress" despite"unstable and uncertain factors in external environment. Officials reiterated their commitment to implement existing macroeconomic policies but provided no specific guidance about whether additional changes to policy settings will be considered in the near-term.

Data published today were weaker than consensus forecasts. The China's RPI and RPI-P fell from plus 14 and plus 10 to minus 14 and minus 30 respectively, indicating that recent Chinese data in sum are coming in just below consensus forecasts.

The consensus sees continued muted sales growth (for China) from a year ago at 3.8 percent in August versus 3.7 percent in July.

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.