China: Retail sales continue to lose momentum
August 9, 2012
In July, nominal retail sales grew 13.1% over the same month last year, which was below both the 13.7% rise observed in June and the 13.5% increase expected by the market. The reading represents, in fact, the lowest growth rate since December 2005 - excluding the January and February figures, which are highly distorted by seasonal effects related to the Chinese Lunar New Year holiday. The slowdown was broad-based as a majority of the main sub-components decelerated over the previous month. Compared to the previous month, retail sales expanded a seasonally adjusted 1.05%, following on the 1.29% tallied in June. Owing to the weaker prints seen throughout this year, the trend continues to point downwards, with annual average growth in retail sales falling from 15.9% in June to 15.6% in July.