China Sept Retail Sales Grow 10.3%, Beating Estimates

     BEIJING (MNI) - China retail sales grew at a better-than-expected rate in

September, according to data released by the National Bureau of Statistics on

Thursday.

     Retail sales grew 10.3% year-on-year in September to CNY3.087 trillion, 0.2

percentage point higher than the 10.1% forecast median by 18 financial

institutions surveyed by MNI. It was also 0.2 percentage point higher than the

10.1% growth in August, but still lower than the monthly results for March

through July, when growth ranged from 10.4% to 11%.

     The rebound of retail sales helped support China's robust 6.8% GDP growth

rate in the third quarter, Jiuzhou Securities chief economist Deng Haiqing said

in a note on Thursday.

     From January to September, retail sales reached CNY26.3178 trillion, an

increase of 10.4% from the same period last year, and flat with the

January-August period.  

     September retail sales were dragged by slowed y/y growth in restaurant

sales -- at 10.2%, down from 10.7% in August -- but was driven by a 0.3

percentage point increase of retail goods sales growth at 10.4%. "It may be

related to the high growth of service consumption," Deng said.

     Among retail goods sales, oil and related products made a contribution of

8.5%, up from 4.5% in August. But growth of telecommunication equipment sales

slowed to 3.8% from 12.2%. 

     Car sales growth was flat at 7.9% in September.

     Furniture sales growth accelerated 4.2 percentage points to 15.5% in

September from August, garment sales growth rose by 3.7 percentage points to

6.2%, and pharmaceuticals sales growth increased by 3.2 percentage points to

14.6%, underpinning the hike of retail sales in September.

     Retail sales growth in the first nine months was dragged by a slight 0.1

percentage point slowing in restaurant retail sales to 11%.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: vince.morkri@marketnews.com

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