China: Retail sales slow in October
November 8, 2011
In October, nominal retail sales grew 17.2% over the same month last year, which undershot both the 17.7% increase recorded in September and market analysts' expectations of a 17.6% rise. The modest slowdown was mainly due to slower growth in automobile sales, which grew 12.6% year-on-year in October (September: +18.4% yoy). In addition, sales of petroleum and petroleum related products added 34.2% over the same month last year (September: +38.7% yoy). Seasonally adjusted data do not fully corroborate the moderation suggested by the annual figures, with retail sales expanding 1.30% over the previous month, which virtually mirrored September's 1.35% increase. The lower reading in retail sales was consistent with the decline seen in consumer confidence in September. The index dropped from 105.0 points in August to 103.4 points in September, which represented the lowest level since October 2010, but remained above the 100-point threshold that separates optimistic from pessimistic territory. The consumer confidence index is published by the National Bureau of Statistics and covers the consumer expectation index and the consumer satisfaction index in 20 cities all over the country.