| Consensus | Consensus Range | Actual | Previous | |
| Month over Month | -0.38% | -0.48% | ||
| Year over Year | -0.3% | -0.9% to 0.8% | -0.6% | 0.2% |
Highlights
Chinese retail sales fell 0.6 percent on the year in May, slowing sharply from growth of 0.2 percent in April and below the consensus forecast for a fall of 0.3 percent. In month-over-month terms, retail sales fell 0.38 percent after a previous decline of 0.48 percent.
In their statement accompanying today's data, officials characterised the data as showing the economy has"maintained steady momentum". Although officials did not explicitly refer to the Iran conflict, they cautioned that the external environment is"increasingly complex and volatile" and again referred to an imbalance between strong supply and weak demand.
Last month officials pledged to"implement a more proactive fiscal policy and an appropriately accommodative monetary policy", but there was very little indication of officials' views about the policy outlook in today's statement. The statement merely noted that officials had strictly implemented more proactive and effective macro policies over May but provided no guidance on whether any shift in policy settings is being considered.
Market Consensus Before Announcement
Another bleak report expected to show sales down 0.3 percent on year in May after rising only 0.2 percent in April on the year.
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.