China: Retail sales growth eases in May
Retail sales rose 12.7% year on year in May (April: +18.4% yoy). The reading undershot market expectations of 13.6% growth. Looking at subsectors, sales of jewelry, cars, communication equipment and catering saw the fastest growth. In contrast, construction and decoration sales fell by double digits, a symptom of the weak property sector. It should be noted that year-on-year headline retail sales growth continues to be flattered by a favorable base effect, given that in May last year lockdowns caused a sharp contraction in retail activity.
On a seasonally adjusted monthly basis, retail sales rose at a quicker rate of 0.4% in May (April: +0.2% mom).