As we discussed in Commodore Research's most recent Weekly China Report, China's retail sales in September grew year-on-year by 1.1%. Taking September’s 0.9% inflation into account, China's retail sales adjusted for inflation achieved increased year-on-year by 0.2%. This is an improvement. Previously, inflation had exceeded retail sales growth in three of the prior five months.
As we discussed in our last update a month ago, every consumer sales category that we monitor contracted on a year-on-year basis in August except for tobacco and alcohol. In September, tobacco and alcohol again grew on a year-on-year basis.
New in September, food sales and daily necessity sales shifted and both managed to increase year-on-year. Previously, food sales had contracted in three of the prior four months.
Daily necessity sales had previously contracted on a year-on-year basis for four straight months.
