China's consumer retailing rises in November amid slowing economy

From a gloomy sales figures issued by several global companies, the announcement of the retail sales of consumer goods in China topped 10 trillion yuan by mid-December 2008  by the Chinese ministry of commerce today shows some positivism.

The ministry of commerce also forecast that the retail sales of consumer goods will reach 10.8 trillion yuan for the whole year of 2008, up by some 21 per cent over last year. The increase is faster than the 16.8 per cent rise in 2007.

The holidays are expected to boost the market despite of negative impact of the international financial crisis on the domestic market, said the ministry at its website.

The sales in the first 10 days of November exceeded that of the whole year of 2007 which stands at about 8.9 trillion yuan.

Last month China's retail sales grew at a slower annual rate of 20.8 per cent amid easing inflation and weakening consumer sentiment according to the National Bureau of Statistics.

November retail sales reached 979.08 billion yuan ($142.93 billion). The growth rate was 1.2 percentage points less than in October but 2 percentage points more than last November's increase, said the NBS.

October's retail sales grew at a slower annual rate of 22 per cent due to easing inflation and weak consumption sentiment amid a slowing economy.

In recent months growth in China's retail sales has continuously decelerated, with the annualised growth in September and August bheing 23.2 per cent marginally below 23.3 per cent in July.

Economists expect a further slowdown in the coming months, but the fiscal expansion is likely to buffer a rapid fall in retail sales in general and consumption in particular, according Merrill Lynch said in report