On a year-over-year basis, China’s retail sales showed strong recovery in June 2016, according to the National Bureau of Statistics of China.
The country’s retail sales rose by 10.6% in June 2016 compared to a 10.0% rise in May. This reading was well above market expectations of a 10% rise, and it was the highest since December 2015.
In terms of sector-by-sector performance, sales increased in building materials by 14.2%, in furniture by 13.4%, in home appliances by 12.3%, in telecommunications by 12.1%, in personal care by 11.7%, in automobiles by 9.5%, and in cosmetics by 7.9%.
The improvement in sales in different sectors signifies that consumer sentiment is improving in the economy. After the slowdown in economic activity in China, the economy is going through a transitional phase.
From a manufacturing hub, it’s transitioning to a consumer-based economy. Consumerism will play a large role in the future growth of the country’s economy.
(Source: Market Realist)