SCIO briefing on China's economy in the first three quarters
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E-mail China.org.cn, October 19, 2016
Market News International (United States):
The total retail sales of consumer goods in September rose 10.7 percent year on year. You mentioned just now that the CPI in September rose remarkably. So, after deducting CPI factors, what were the total retail sales of consumer goods in September?
Sheng Laiyun:
The total retail sales of consumer goods in September rose 10.7 percent year on year, was one percentage point higher than the previous month, which are fairly high levels of growth. After deducting price factors, its actual year-on-year growth was 9.8 percent, 0.1 percentage point higher than August. Both nominal growth rates and actual growth rates reflect that the total retail sales of consumer goods are growing steadily and with robust momentum. This is an important foundation for a stable economy.
As for the reasons behind the robust growth, the Chinese economy has been stable, which has helped with employment and income growth, so that consumers have reliable expectations. For the past two months, the consumer confidence index has been improving; the figure for recent months stayed at around 105 percent, which was very important.
On the other hand, seen from structural factors, the total retail sales of consumer goods grew faster in this month than August, helped in part by strong growth from the automotive sector. Auto sales from January to September increased by 9.1 percent, 0.5 percentage point faster than during the period between January and August, meaning that auto sales are contributing more to consumption.
What's the reason behind the significant volume growth? As I said in the past, China is experiencing an upgrade in its consumption structure. When basic demands in life are satisfied, people want to live in better houses, eat nicer food and have their own cars, better cars. Therefore, the consumption of automobiles as well as its related products has been continuously rising. Of course, the support of favorable policies is also part of the reason.
Moreover, real estate sales so far this year are also satisfactory. Once you buy a new house, you'll decorate it, buy some home appliances and furniture. Therefore, the growing property market drove up the decoration and appliance sectors.
The upgrade of consumption structure also played a part. For example, the consumption of cultural, educational, senior care and health products has been rising continuously. These factors, when combined, made the total retail sales of consumer goods for the first three quarters of this year as well as that for the recent two months retain a robust momentum. Thank you.
Hu Kaihong:
That is the end of today's press briefing. Thank you, Mr. Sheng and thank you all, friends from the press.
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