Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200806/20080613/article_363096.htm
Retail sales jump 21.6%
Created: 2008-6-13 15:32:50
Author:Wang Yanlin
CHINA'S retail sales expanded 21.6 percent in May to 870.4 billion yuan (US$124.3 billion), the National Bureau of Statistics said today.
The growth was close to the 22-percent increase in April and continued its fast pace, analysts said. The small dip was attributed to a shorter Labor Day holiday, weakened desire to spend after the May 12 earthquake and a slumping stock market.
"Domestic consumption has been the biggest driver of China's economy since last year. From January to May this year, retail sales kept robust and stable expansion with growth around 20 percent. It is a good sign for China to reduce reliance on exports and investment," said Li Maoyu, an analyst with Changjiang Securities Co.
"The small drop last month may be a side effect of the earthquake, which to some extent curbed people's demand for unnecessary purchases. A shortened Labor Day holiday and a bumpy stock market also contributed to it."
This year, the "golden week" holiday in May was cut to three days, and after the devastating earthquake in Sichuan Province on May 12, China had a three-day mourning period. All entertainment and recreation activities were halted during the mourning period, thus reducing consumption.
Meanwhile, Shanghai's key stock index has dropped more than 50 percent since its peak in October. Shares on the smaller Shenzhen bourse have also posted huge losses. It put a damper on people's growing appetite to consume.
But momentum stayed on course.
In May, retail sales jumped 22.3 percent to 594.7 billion yuan while an increase of 20.1 percent was tracked in rural areas with sales of 275.7 billion yuan.
Wang Qing, an analyst with Morgan Stanley Research, said high consumer prices contributed to sales expansion.
In May, the Consumer Price Index, the main gauge of inflation, jumped 7.7 percent from a year earlier. It eased from an 8.5-percent hike in April.
Among the subcategories of retail consumption, sales of meat, poultry and eggs rose 25.4 percent in May, compared with 30.8 percent a month earlier. Spending on grain and edible oils increased 27.6 percent last month, decreasing from 36.3 percent in April.
Sales of petroleum and its related products remained strong, surging 42.5 percent last month compared to 45.4 percent in April, while spending on automobiles expanded 32 percent, up from April's 25.7 percent.
From January to May, retail sales increased 21.1 percent to 4.24 trillion yuan.
The growth was close to the 22-percent increase in April and continued its fast pace, analysts said. The small dip was attributed to a shorter Labor Day holiday, weakened desire to spend after the May 12 earthquake and a slumping stock market.
"Domestic consumption has been the biggest driver of China's economy since last year. From January to May this year, retail sales kept robust and stable expansion with growth around 20 percent. It is a good sign for China to reduce reliance on exports and investment," said Li Maoyu, an analyst with Changjiang Securities Co.
"The small drop last month may be a side effect of the earthquake, which to some extent curbed people's demand for unnecessary purchases. A shortened Labor Day holiday and a bumpy stock market also contributed to it."
This year, the "golden week" holiday in May was cut to three days, and after the devastating earthquake in Sichuan Province on May 12, China had a three-day mourning period. All entertainment and recreation activities were halted during the mourning period, thus reducing consumption.
Meanwhile, Shanghai's key stock index has dropped more than 50 percent since its peak in October. Shares on the smaller Shenzhen bourse have also posted huge losses. It put a damper on people's growing appetite to consume.
But momentum stayed on course.
In May, retail sales jumped 22.3 percent to 594.7 billion yuan while an increase of 20.1 percent was tracked in rural areas with sales of 275.7 billion yuan.
Wang Qing, an analyst with Morgan Stanley Research, said high consumer prices contributed to sales expansion.
In May, the Consumer Price Index, the main gauge of inflation, jumped 7.7 percent from a year earlier. It eased from an 8.5-percent hike in April.
Among the subcategories of retail consumption, sales of meat, poultry and eggs rose 25.4 percent in May, compared with 30.8 percent a month earlier. Spending on grain and edible oils increased 27.6 percent last month, decreasing from 36.3 percent in April.
Sales of petroleum and its related products remained strong, surging 42.5 percent last month compared to 45.4 percent in April, while spending on automobiles expanded 32 percent, up from April's 25.7 percent.
From January to May, retail sales increased 21.1 percent to 4.24 trillion yuan.
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