| Consensus | Consensus Range | Actual | Previous | |
| Month over Month | -0.42% | 0.16% | ||
| Year over Year | 2.9% | 2.7% to 3.3% | 1.3% | 2.9% |
Highlights
Chinese retail sales rose 2.9 percent on the year in November, slowing from growth of 2.9 percent in October and well below the consensus forecast of 2.9 percent. In month-over-month terms, retail sales fell 0.42 percent in November after advancing 0.16 percent in October.
In their statement accompanying today's data, officials characterised the data as showing the economy sustained"the momentum of steady progress" despite"multiple challenges of external instability" and"insufficient effective domestic demand". Officials provided no specific guidance about whether changes to policy settings will be considered in the near-term, but reaffirmed their commitment to"proactive" macroeconomic policies.
Data published today were mixed relative to consensus forecasts. The China's RPI and RPI-P fell from zero and plus 10 to minus 29 and minus 30 respectively, indicating that recent Chinese data in sum are coming in below consensus forecasts.
Market Consensus Before Announcement
Forecasters expect sales up a very modest 2.9 percent on year, same as in October.
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.