China retail sales ‘sluggish’
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China’s retail sector is continuing to expand faster than in any other major market in the world – but the growth rate continues to slow.
The National Bureau of Statistics said on Wednesday that China retail sales grew 10.7 per cent year on year to 4.8 trillion yuan (US$779 billion) in the first two months of 2015.
That’s a full 1.3 percentage points slower than the annual growth rate for 2014.
According to the bureau, the restaurant and catering sector achieved an 11.2 per cent year-on-year sales rise in revenue and sales of ‘other consumer products’ increased by 10.7 per cent.
Online retail sales soared 44.6 per cent year on year to 475.1 billion yuan.
Analysts attributed the slowing growth rate to sluggish property sales (reducing demand for housewares and furniture, etc) and the ongoing government clampdown on corruption and gift-giving, as well as general economic malaise.
The growth rate was lower than the 11.7 per cent consensus of analysts prior to the bureau’s announcement.
Questions & Answers
Q.What was the growth rate of China's retail sales in the first two months of 2015?
What was the growth rate of China's retail sales in the first two months of 2015?
China retail sales grew 10.7 per cent year on year, reaching 4.8 trillion yuan in the first two months of 2015.
Q.How does the recent retail sales growth compare to the previous year?
How does the recent retail sales growth compare to the previous year?
The 10.7 per cent growth rate is 1.3 percentage points slower than the annual growth rate recorded for 2014.
Q.Which specific sectors showed strong growth within the retail sales figures?
Which specific sectors showed strong growth within the retail sales figures?
The restaurant and catering sector saw an 11.2 per cent sales rise, while online retail sales soared by 44.6 per cent year on year.
Q.What reasons have been suggested for the slowing growth rate in China's retail sector?
What reasons have been suggested for the slowing growth rate in China's retail sector?
Analysts attributed the slowdown to sluggish property sales, the government's anti-corruption efforts, and a general economic malaise.
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