The chart below from Trading Economics shows China's total retail sales of consumer goods %YoY. The October number came in at 14.5% a bit ahead of expectations - definitely a strong result.
|Source: Trading Economics|
When looking at the year-over-year numbers, it is difficult to appreciate the notional increases in retail sales. The absolute growth in RMB terms is quite spectacular.
For now export growth, particularly to the US (see discussion), will be the key driver of China's GDP. And with the US consumer confidence hitting new highs (see chart) as the holiday season approaches, China may be in luck.