Slower growth in retail sales
By Wang Yanlin |
April 17, 2010, Saturday
|
Print Edition
Print Edition
SHANGHAI'S retail sales expanded by a slower 15.5 percent from a year earlier to 47.4 billion yuan (US$6.95 billion) in March, the Shanghai Statistics Bureau said yesterday.
As there was less demand after the Spring Festival holiday, the growth rate slowed from the rise of 27.6 percent in February. But it was still a healthy growth compared with a 14 percent increase in retail sales in 2009.
"People's spending continued to grow steadily despite uncertainties in the broader economy," said Li Maoyu, an analyst at Changjiang Securities Co. "But local demand is still not sufficient enough to become a major driver of the economy. Stimulus may work to spur demand, but more should be done to improve the social safety net so that people feel safe to spend."
A social safety net includes affordable housing, education and health-care services, Li said.
In a separate report by the bureau, it said the consumer confidence index in the city rose to 113.5 in the first three months, up from 108.1 a quarter earlier. A reading above 100 refers to optimism.
"People are confident of the city's economic outlook and the expansion in sales is expected to rise faster in the coming months because of the effect of the World Expo," said Wang Zehua, an analyst with the bureau.
The city's consumption of food climbed 11 percent year on year to 14.6 billion yuan in March while people's spending on clothes gained 15.4 percent to 5.1 billion yuan.
They also spent 24.9 billion yuan on daily necessities and appliances, a jump of 16.3 percent from a year earlier.
Spending on fuel jumped most sharply by 36.8 percent to 2.8 billion yuan.
China increased fuel prices again on Wednesday by more than 4 percent.
As there was less demand after the Spring Festival holiday, the growth rate slowed from the rise of 27.6 percent in February. But it was still a healthy growth compared with a 14 percent increase in retail sales in 2009.
"People's spending continued to grow steadily despite uncertainties in the broader economy," said Li Maoyu, an analyst at Changjiang Securities Co. "But local demand is still not sufficient enough to become a major driver of the economy. Stimulus may work to spur demand, but more should be done to improve the social safety net so that people feel safe to spend."
A social safety net includes affordable housing, education and health-care services, Li said.
In a separate report by the bureau, it said the consumer confidence index in the city rose to 113.5 in the first three months, up from 108.1 a quarter earlier. A reading above 100 refers to optimism.
"People are confident of the city's economic outlook and the expansion in sales is expected to rise faster in the coming months because of the effect of the World Expo," said Wang Zehua, an analyst with the bureau.
The city's consumption of food climbed 11 percent year on year to 14.6 billion yuan in March while people's spending on clothes gained 15.4 percent to 5.1 billion yuan.
They also spent 24.9 billion yuan on daily necessities and appliances, a jump of 16.3 percent from a year earlier.
Spending on fuel jumped most sharply by 36.8 percent to 2.8 billion yuan.
China increased fuel prices again on Wednesday by more than 4 percent.
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