China: Retail sales slow in July
August 9, 2011
In July, nominal retail sales grew 17.2% over the same month last year, which undershot the 17.7% increase tallied in June, a result market analysts had expected to see repeated. The increase in retail sales partly reflected strong growth in petroleum and petroleum related products, which jumped 40.6% (June: +36.2% year-on-year). On the other hand, automobile sales added 11.9% over the same month last year (June: +16.9% yoy). Seasonally adjusted data corroborate the slowdown suggested by the annual figures, with retail sales expanding 1.26% over the previous month, which came in below the previous month's 1.49%. The moderation in retail sales contrasted with the increase seen in consumer confidence in July on the back of purchases of non-necessities. The Bankcard consumer confidence index (BCII) tracks expenses of credit card users, including 200,000 individuals in affluent cities, and is conducted by Xinhua News Agency and China UnionPay.