Consumers cautious over spending
By Wang Yanlin |
June 15, 2011, Wednesday
|
Print Edition
Print Edition
CHINA'S retail sales growth weakened further in May.
Consumer spending rose 16.9 percent from a year earlier to 1.46 trillion yuan (US$225.3 billion) in May, the National Bureau of Statistics said yesterday.
April saw a rise of 17.1 percent and March 17.4 percent.
Peng Ken, an analyst at Citigroup, said: "As this measure is calculated at current prices, the deceleration should be more significant considering higher inflation. The slowdown seems more widespread, affecting clothing, daily groceries, jewelry and home appliances."
China's Consumer Price Index, the main gauge of inflation, rose to a 34-month high of 5.5 percent in May.
A cooling economy, together with expiring government subsidies for auto and home appliance buyers, has made people more cautious about spending, said Li Maoyu, a Changjiang Securities Co analyst. "If China expects to rely more on domestic consumption to drive the economy, more stimulus measures are needed."
China's car sales fell 6 percent in May from April amid weakening demand after incentives ended. The Ministry of Finance said subsidies for car buyers would be resumed, but only for rural residents.
Consumer spending rose 16.9 percent from a year earlier to 1.46 trillion yuan (US$225.3 billion) in May, the National Bureau of Statistics said yesterday.
April saw a rise of 17.1 percent and March 17.4 percent.
Peng Ken, an analyst at Citigroup, said: "As this measure is calculated at current prices, the deceleration should be more significant considering higher inflation. The slowdown seems more widespread, affecting clothing, daily groceries, jewelry and home appliances."
China's Consumer Price Index, the main gauge of inflation, rose to a 34-month high of 5.5 percent in May.
A cooling economy, together with expiring government subsidies for auto and home appliance buyers, has made people more cautious about spending, said Li Maoyu, a Changjiang Securities Co analyst. "If China expects to rely more on domestic consumption to drive the economy, more stimulus measures are needed."
China's car sales fell 6 percent in May from April amid weakening demand after incentives ended. The Ministry of Finance said subsidies for car buyers would be resumed, but only for rural residents.
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