China's consumer goods retail sales rise 15.2 per cent in May

China's retail sales of consumer goods increased 15.2 per cent to touch 1,002.8 billion yuan, YoY, the National Bureau of Statistics said today. The growth rate was 0.4 percentage points higher than the April level.

The total retail sales of consumer goods from January to May hit 4,877.0 billion yuan, up 15 percent from a year earlier, according to the NBS.

Sale of consumption goods grew at a fast pace of 15.2 percent in May as China's consumer price index (CPI), the main gauge of inflation, fell 1.4 per cent. (See: China's May CPI falls 1.4 per cent, PPI declines 7.2 per cent)

Also the producer price index (PPI), a major measure of inflation at the wholesale level, fell 7.02 per cent in May year on year, for the fifth consecutive month.

The retail sales of consumer goods in urban areas rose by 15.0 per cent year to 684.0 which was lower that that of rural area which achieved 318.8 billion yuan, up by 15.6 per cent, as per the NBS website. This indicates that rural growth was faster than than in cities.

In terms of different industries, the retail sales of wholesale and retail trades was 848.6 billion yuan, a year-on-year increase of 15.1 per cent; that of accommodation and catering industry totaled 141.1 billion yuan, up by 17.2 per cent; that of other industries was 13.2 billion yuan, up by 3.8 per cent, as per the NBS website.

In terms of different commodity categories, the retail sales above designated size of wholesale and retail trades, divided by foodstuff, clothing and utilized commodities increased 16.0, 21.2 and 14.4 per cent respectively per the NBS website.

The Ministry of Commerce has said in April that 510,000 rural local supermarkets would be opened by the end of 2010, to provide access to the rural people as well as to promote rural sales.

The retail sales for grain and oil increased 15.6 per cent; meat, poultry and eggs surged 13.3 per cent; commodities shot up by 15.4 per cent.

Cultural and offices appliances rose 2.6 per cent; sports and entertainment supplies boomed 6.9 per cent; household appliances and AV equipments rose 12.0 per cent; furniture was up by 33.3 per cent.

Cosmetics jumped 21.7 per cent; garments went up 22.0 per cent; gold, silver, and jewelry ballooned 28.7 per cent; Automobiles rose by 23.8 per cent; petroleum and related products grew 5.0 per cent and building and decoration materials increased 12.6 per cent.

However, demand for telecommunication equipments declined 7.8 per cent.

The surge in retail sales of consumer goods consumption is a health sign along with the other favourable economic data released for May are China's industrial output was up 8.9 per cent and the urban fixed-asset investment was up 32.9 per cent in first five months.

China's consumer price index (CPI)fell 1.4 per cent YoY in May and producer price index (PPI) fell 7.02 per cent the Chinese National Bureau of Statistics (NBS), said.(See: China's May CPI falls 1.4 per cent, PPI declines 7.2 per cent)

To boost exports, China has raised export tax rebates in June for the seventh time since August 2008, taking the total number of rebated items to more than 2,600. (See: China raises tax rebates for the seventh time to boost exports)

These data and new incentives may help China meet its target of 8 per cent economic growth in 2009. (See:China confident of achieving 8 per cent economic growth)