Consumer spending ahead in China despite fears

Retail sales in China grew by 9.9% in August 2003 compared to the same period last year.

Building materials, cars and telecommunications led the figures fuelled by a current building boom and pent-up demand after the outbreak of the SARS virus.

Individually car sales are up 60% while the purchase of building materials have risen 43% on the year-on-year figures.

Most of the growth is in metropolis areas with rural spending lagging far behind their city counterparts.

However, reforms set to be introduced by the Chinese government have many city dwellers fearful of losing their jobs.

Fixed-asset investment has also grown indicating that many are continuing to save against unforeseen eventualities.