As renewed restrictions in response to a surge in infections since October squeeze consumer spending.
China’s nominal retail sales of consumer goods climbed 4.9% on the year in October, according to data published Monday by the National Bureau of Statistics. Year-on-year gains rose from 4.4% in September despite market projections for a drop, largely due to increased spending on gasoline and other fuel.
Fuel prices jumped nearly 30% last month, compared with a 17% increase in September.
“The rise in retail sales can be explained almost entirely by surging prices for fuel, like gasoline,” said Takamoto Suzuki, manager of economic research at Marubeni (China).
But in real terms, retail sales of consumer goods advanced 1.9% on the year in October — narrowing from the 2.5% gain in September — as a sluggish recovery in income and strict coronavirus measures cast a pall over China’s economy.
A total of 1,297 locally contracted, symptomatic cases have been confirmed in China since Oct. 19, according to its National Health Commission. The country has been under strict restrictions to curb the virus’ spread since late October ahead of the Communist Party Central Committee plenum earlier this month, as well as the Beijing Winter Olympics in February.
Beijing has restricted residents of areas with any locally transmitted coronavirus cases, or anybody who has visited such areas in the last 14 days, from entering its limits.
Two high-speed trains headed to the capital from Shanghai and Zhejiang Province were stopped en route on Oct. 28, after crew members were found to have been in close contact with a coronavirus patient, Chinese media reported. A total of 346 passengers and staffers were forced to disembark and quarantine.
The index of service production rose 3.8% on the year in October, though growth is still slow compared with the pre-pandemic rate of around 7%. Demand for transportation has plunged, as many people avoid traveling across provincial lines.
Urban restaurants and entertainment facilities have also suffered, with growth in food industry revenues slowing to 2% on the year last month from 3.1% in September.
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