Chinas retail sales grew steadily during the first six half of 2006 and growth will continue in the second half of the year. Retail sales rose 13.3% year-on-year in the January-June period to $455.6 billion, the National Bureau of Statistics said. Sales in June alone rose 13.9% to $75.7 billion.

The top five categories in the first half of the year were petroleum products, vehicles, telecom products, jewelry, and construction and decoration, which all recorded year-on-year growth of more than 25%.

"The relatively rapid growth of retail sales, accounting for around 65% of the total social consumption, indicates consumption is now providing more support to the countrys economy," said Qi Jingmei, a senior economist with the State Information Centre.

According to Qi, consumption in both urban and rural areas registered more than 10% growth. It is rare for rural areas to see such high growth rates. "The major reasons behind the strong consumption are the countrys robust economic growth and increasing incomes," she said. The current round of economic growth began in 2003, she said.
The National Bureau of Statistics said per capita disposable income in towns and cities was $749.60 for the first half of the year, a growth of 10.2%.