China’s retail sales grew only 2.5 percent in August year-on-year, impacted by the country’s dealing with outbreaks of Covid-19 over the summer months, according to the National Bureau of Statistics (NBS).
This rate of growth comes in well below the 7 percent forecast by analysts in a Reuters poll and much lower than the 8.5 percent growth seen in July.
Mainland China had controlled a late July outbreak of the highly contagious delta variant by mid-August, but under Beijing’s “zero tolerance” policy, that containment came at the cost of restricting travel and local lockdowns in some places during a significant portion of the summer holidays.
China’s producer price inflation has been impacting the cost of sourcing. Now, fashion brands are also bracing for broader economic pressures that may lead consumers to tighten their belts.