1. News
May 15, 2018

China’s retail sales increase by 9.4% year-on-year

Official data from the China’s National Bureau of Statistics (NBS) showed that China’s retail sales increased by 9.4% in April from a year earlier, slowing down from the 10.1% year-over-year increase registered in March.

By Pamela Kokoszka

Official data from the China’s National Bureau of Statistics (NBS) showed that China’s retail sales increased by 9.4% in April from a year earlier, slowing down from the 10.1% year-over-year increase registered in March.

China’s retail sales of consumer goods grew by 9.4% year-one-year to reach CNY2.85tr in April.

Macquarie Group economist Larry HU said the government’s push to reduce fast-growing household debt is likely restraining retail-sales increase. According to Hu, relatively steady economic expansion should give officials room to continue the effort to cut debt.

Hu said that trade remains a challenge for Beijing despite early signs of easing tension between the US and China. Reportedly, both governments are closing in on a deal that would result in China’s ZTE Corp. receiving a reprieve from US sanctions in exchange for Beijing removing tariffs on billions of dollars of US agricultural products.

Mizuho Securities Economist Jianguang Shen said that foreign trade represents a big part of growth for Beijing. He noted that exports, which grew 14% in the first four months this year, could become an even bigger driver of growth this year if the trade disputes between US and China are resolved. Net exports contributed by 9% to last year’s economic expansion.

Unlike infrastructure, a disruption in trade could have a bigger negative impact since, according to Shen, ‘exports are something that can be totally out of their hands’.

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So far however, the trade frictions have yet to show an impact on China’s economy the statistics bureau said.

While April exports and imports were surprisingly solid, business surveys point to a sharp weakening in export order growth, possibly as companies grow worried about being stuck with high inventories if the US and China start imposing tariffs.

Analysts suspect that some firms may be rushing out shipments to beat any punitive trade measures, flattering the most recent export figures but reducing future gains.

Trade dispute between US and China started last month after the US threatened to impose 25% tariff on 1,333 Chinese products in retaliation to alleged intellectual property theft. China has responded to the threats by provisionally targeting $50bn of US exports.

Last week, China put US exporters under pressure as Chinese inspectors delayed US agricultural products, luxury automobiles and pet food from entering China.

Washington and Beijing resumed trade negotiations this week, after talks earlier this month appeared to make little progress in narrowing their differences.

Official data from the China’s National Bureau of Statistics (NBS) showed that China’s retail sales increased by 9.4% in April from a year earlier, slowing down from the 10.1% year-over-year increase registered in March.
China’s retail sales of consumer goods grew by 9.4% year-one-year to reach CNY2.85tr in April.
Macquarie Group economist Larry HU said the government’s push to reduce fast-growing household debt is likely restraining retail-sales increase. According to Hu, relatively steady economic expansion should give officials room to continue the effort to cut debt.
Hu said that trade remains a challenge for Beijing despite early signs of easing tension between the US and China. Reportedly, both governments are closing in on a deal that would result in China’s ZTE Corp. receiving a reprieve from US sanctions in exchange for Beijing removing tariffs on billions of dollars of US agricultural products.
Mizuho Securities Economist Jianguang Shen said that foreign trade represents a big part of growth for Beijing. He noted that exports, which grew 14% in the first four months this year, could become an even bigger driver of growth this year if the trade disputes between US and China are resolved. Net exports contributed by 9% to last year’s economic expansion.
Unlike infrastructure, a disruption in trade could have a bigger negative impact since, according to Shen, ‘exports are something that can be totally out of their hands’.
So far however, the trade frictions have yet to show an impact on China’s economy the statistics bureau said.
While April exports and imports were surprisingly solid, business surveys point to a sharp weakening in export order growth, possibly as companies grow worried about being stuck with high inventories if the US and China start imposing tariffs.
Analysts suspect that some firms may be rushing out shipments to beat any punitive trade measures, flattering the most recent export figures but reducing future gains.
Trade dispute between US and China started last month after the US threatened to impose 25% tariff on 1,333 Chinese products in retaliation to alleged intellectual property theft. China has responded to the threats by provisionally targeting $50bn of US exports.
Last week, China put US exporters under pressure as Chinese inspectors delayed US agricultural products, luxury automobiles and pet food from entering China.
Washington and Beijing resumed trade negotiations this week, after talks earlier this month appeared to make little progress in narrowing their differences.