Disposable income rise drives growth
Chinese retail sales remained strong in July, up 13.7 per cent year-on-year, according to the country's National Bureau of Statistics. Total sales grew to Yuan 601.2 billion (US$75.1 billion). Urban and rural disposable income rose by 10.2 per cent and 11.9 per cent respectively in the first six months of this year.
The Bureau forecasts that sales will increase further over the rest of the year as the Chinese government reduces the amount people have to pay for services such as healthcare, education and housing.
China is working to increase domestic spending and become less reliant on external investment, according to analysts.
Chinese retail sales grew by 12 per cent in 2005.
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