Supported by the strong optimism of Chinese consumers, China's June retail sales (all items, nominal value terms) increased very strongly year-on-year, the fourth consecutive month of growth. A similar growth pattern has been observed for China's retail sales in the first half of 2007.

Nearly all categories of retail sales performed better and reported double-digit growth in the January to June period. Strong growth in sales of textile and apparel items was recorded year-on-year, in nominal terms. Department store sales of apparel also continued to grow strongly in June, in both volume and value terms.

Driven by the hot housing market, sales of floor coverings and bedding also performed well.