HONG KONG - Chinese retail sales jumped last month, beating expectations and fuelling hopes that consumers are helping kickstart the world's second-biggest economy.
Sluggish domestic consumption, an embattled property sector and soft overseas demand for China's exports have complicated the country's post-Covid recovery after restrictions were lifted last year.
The retail data, which also revealed a better-than-expected rise in industrial output, is the latest pointing to a stabilisation and follows a number of stimulus measures by the government.
Retail sales -- the main indicator of household consumption that is closely followed by markets -- jumped 4.6 percent on-year in August, the National Bureau of Statistics (NBS) said.
That marked a big improvement on July's 2.5 percent and was higher than the three percent forecast in a Bloomberg survey of economists.
Meanwhile, industrial production climbed 4.5 percent on-year, which was also a significant increase from July and more than estimated.
The government in recent weeks announced a series of measures to lift the economy, the latest coming Thursday with the People's Bank of China cutting the amount of cash lenders need to keep in reserve -- a move aimed at freeing up cash for loans.
Authorities have also unveiled tax breaks for households and businesses to support consumption, while taking steps to address the crisis in the crucial property sector.
Several major cities, including Beijing and Shanghai, have relaxed their criteria for mortgage loans, while first-time buyers have been granted renegotiation of their loan rates.
"China's activity data improved from July's low point, showing tentative signs that we may be past the trough," HSBC economists said in a note.
"However, with ongoing headwinds from the property sector and longer term structural challenges such as from local government debt, Beijing will likely need to continue to provide ongoing policy support to build up the recovery momentum."