China’s retail sales growth has decelerated in April 2024, reflecting a cautious consumer outlook amid ongoing economic challenges. The latest data released on May 17, 2024, shows that year-to-date retail sales growth is now at 4.13%, a decrease from the 4.70% growth recorded in March 2024.
The slowdown in retail sales, which measures the pace at which consumers are spending on goods ranging from cars to clothing, indicates a weaker-than-expected domestic demand. This April's figures show a year-over-year comparison with the same month last year, underscoring a trend that is garnering concern among economists who had hoped for more robust growth to bolster the world's second-largest economy.
Analysts attribute this deceleration to several factors, including tepid income growth, rising living costs, and uncertainties in global trade. With the previous month’s retail growth standing at 4.70%, the latest figures suggest a sharp pullback in consumer spending, which could have broader implications for China’s economic trajectory for the rest of the year. Policymakers may need to explore new strategies to stimulate retail activity and sustain economic momentum.