China: Retail sales moderate slightly in October
November 11, 2010
In October, nominal retail sales added 18.6% over the same month last year. The figure came in a notch below the 18.8% increase tallied in September and undershot market expectations, which had seen retail sales maintaining the growth pace seen in the previous month. October's slight deceleration was, in part, the result of weaker sales of foodstuffs, which rose 27.3% year-on-year, down from a 31.9% expansion in September. Meanwhile, the result was partially offset by an improvement in car sales, which weigh more than 25% in the calculation of the retail sales index. In October, automobile sales added 32.2% over the same month last year, up from a 29.7% rise in September. Despite the relatively stable reading, annual average retail sales continued to rise, improving from 18.0% in September to 18.2% in October, which is the highest level since July 2009. Consensus Forecast panellists expect retail sales to grow 18.6% this year, which is down 0.3 percentage points from last month's forecast. For 2011, the panel anticipates retail sales to slow to 17.2%.