VIDEO: China turning to shopping malls to gauge spending

Published Jun 25, 2017

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Beijing - China

is turning to shopping malls and convenience stores to better gauge spending in

the world’s largest consumer market, the latest step toward upgrading its

economic indicators.

The gauges measure operations for those businesses on

a scale of 0 to 100, in which 50 is the dividing line between improving

and deteriorating conditions, with sub-gauges that include manager expectations

and the overall business environment, the Ministry of Commerce said in a

statement.

It will publish the data in the first month of each quarter

to reflect activity in the prior three-month period. "As China’s

retail sales keep expanding, innovating and updating at a faster pace, shopping

malls and convenience stores stand out as the most rapidly developing

brick-and-mortar models," Sun Jiwen, a ministry spokesman, said at a

briefing in Beijing.

Read also:   Atmosphere draws shoppers to China Malls 

The new readings show the government pushing ahead with

efforts to track to consumption, which is increasingly replacing

smokestack industries as the dominant economic driver. Consumption contributed

77.2% to economic expansion in the first quarter, up from 64.6% the prior year, according to data from the National Bureau of Statistics.

National Scope

The mall index covers 58 cities in 26 provinces, while the

convenience store indicator is compiled from surveys conducted in more than 30

cities, the ministry said in its statement.

The ministry has contracted with the China Chain Store and

Franchise Association, a Beijing-based industry group, to compile the

index, Sun said. The organization has more than 1 000 members with 300 000

outlets, according to its website.

Sun said the convenience store index indicated rapid

expansion with a 72.2 reading for the last quarter, though he didn’t provide

any historical comparisons. Cities such as Shenzhen, Taiyuan

and Changsha

showed the fastest growth in the small shops, he said.

The ministry didn’t release first quarter data for malls. It

said it will publish that reading and both second-quarter indicators next

month.

"The gauges will provide more information and help us

understand the economy better," said Zhao Hongyan, Hong Kong-based China economist

at Huatai Financial Holdings.

"Consumption has been a new growth driver,

and it has been steady. We hope that it can be a more important pillar of the economy."

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