THE WHAT? China saw retail sales grow 8.5 percent in July versus the same period in 2020, according to a report published by CNBC, well below the 11.5 percent growth forecast.
THE DETAILS Online sales inched up a modest 4.4 percent yoy, considerably under the average 21 percent growth experienced in the past 5 years, CNBC revealed.
Consumer cutbacks were experienced across all categories but the cosmetics sector was among the slowest growing, with sales up just 2.8 percent yoy, well below the 13.5 percent increase posted in June.
THE WHY? One of China’s two major shopping festivals, 618 in June, is thought to have sated shoppers appetite for consumer goods, impacting on July figures. China’s National Bureau of Statistics cited also “the impact of multiple factors including the growing external uncertainties and the domestic COVID-19 epidemic and flooding situation,” as the cause for dampened consumer activity.