China retail sales up 21.6 percent

Despite the earthquake in Sichuan, China’s retail sales has remained strong as sales rose 21.6 percent in May and this rise represented the fastest pace in nine years.

Retail sales also survived a stock-market slump and loss of a week-long holiday, as demand remained buoyant.

According to the statistics bureau, sales soared to 870.4 billion yuan ($126 billion) after increasing by 22 percent in April.

Domestic consumer demand has been the driving force behind the sudden growth and this was a surprise amongst most analysts as the shortened Labour Day holiday and earthquake did not distract demand.

Infrastructure, reconstruction following the earthquake and housebuilding has seen construction material sales increase by 9.3 percent in May after a decline in April

The survival effort has also had a part to play in retail sales as survivors have been supplied with 1.1 million quilts, 4.8 million beds and 14 million pieces of clothing as part of the relief effort which has also helped to boost the economy into recovery.

Meanwhile, the economy is also still recovering as the CSI 300 Index of stocks fell 3.4 percent, closing below 3000 for the first time since April 2007, whilst the yuan rose to close at 6.9018 versus the US dollar.

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