world growth

world growth

Wednesday, August 13, 2008

China's Retail Sales Rise at Fastest Pace Since 1999

Looks like the Chinese consumers are finally opening up their wallets, due to the olympic effect ? This will contribute more toward inflation.

China's Retail Sales Rise at Fastest Pace Since 1999
By Paul Panckhurst and Nipa Piboontanasawat

Aug. 13 (Bloomberg) -- China's retail sales expanded at the fastest pace in at least nine years in July as incomes and prices climbed in the world's fastest-growing major economy.

Sales rose 23.3 percent to 862.9 billion yuan ($126 billion) after gaining 23 percent in June, the statistics bureau said today. That was more than the 22.4 percent median estimate of 19 economists surveyed by Bloomberg News.

The acceleration and a surge in exports last month underscore the strength of China's economy as Japan stands on the brink of a recession and global growth cools. Household electronics sales climbed 18.8 percent, almost twice June's pace, as families bought televisions for the Olympic Games.

``The recent rush of suggestions that China's economy is in trouble must be looking rather shaky,'' said Mark Williams, a London-based economist at Capital Economics Ltd.

The yuan strengthened to 6.8581 against the dollar as of 3:26 p.m. in Shanghai after closing at 6.8632 yesterday. Most Chinese stocks rose as the CSI 300 Index gained 0.52 points to close at 2,444.67.

The retail numbers aren't adjusted for inflation, which cooled to 6.3 percent last month after reaching a 12-year high in February.

Today's data comes two days after figures showing exports climbed 26.9 percent in July, accelerating from 17.2 percent in June, easing concerns that overseas shipments would plummet as the global economy cooled. Japan's economy contracted in the second quarter as exports fell, a report showed today.


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