China: Retail sales drop at sharpest pace since May in October
Retail sales decreased 0.5% in year-on-year terms in October, which contrasted September’s 2.5% increase and market expectations for a small expansion. October’s result marked the worst reading since May, and was driven by lower sales across a range of subsectors, including catering, clothing, jewelry, furniture and building materials. Retail sales were weighed on by the worsening pandemic situation, and a depressed property sector hitting purchases of housing-related items.
On a monthly basis, retail sales dropped 0.7% in seasonally adjusted terms in October, contrasting September’s 0.1% expansion and marking the worst result since March.