No slowdown for China's shoppers

Companies are keen to get Chinese consumers buying their goods

Chinese shoppers continued to spend at record levels in April, a sign that stronger domestic demand may be able to offset a slowdown in exports.

Retail sales rose at an annual rate of 22% last month, the fastest pace since records began in 1999, figures from the National Bureau of Statistics showed.

Sales figures were given a boost by the rate of inflation, which rose to 8.5% in April - close to a 12-year high.

China is keen to tilt growth away from exports and foreign investment.

"For a good amount of spending, consumption in China is actually going to be quite resilient to any slowdown in external demand," said Glenn Maguire, chief economist at Societe Generale in Hong Kong.

Spending boost

Analysts said the rise in domestic spending was supported by an increase in minimum wages, expanding health care and policies focused particularly on boosting consumption in rural areas.

These policies are designed to help the government maintain its budget surplus at a time when it is threatened by a global economic slowdown that has cut foreign demand for China's products.

Demand for discretionary items, including home appliances and furniture, picked up sharply, the figures showed.

Meanwhile, people spent less on grains, cooking oil and meat.

Economists have warned that inflation risks could rise further after one of the most powerful earthquakes in decades ripped through south-western China, killing almost 12,000 people.