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Chinese retail sales beat while the savings rate keeps climbing

Consumption grew 4.1 percent. Household deposits grew faster, which is the awkward part.

Retail sales rose 4.1 percent year on year, ahead of the 3.4 percent expected. Catering and travel led, continuing the pattern of services outperforming goods.

Household bank deposits rose at a faster rate over the same period. Consumption is growing and precautionary saving is growing faster, which is a description of a household sector that is spending more because incomes rose, not because confidence returned.

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