For the first time this year, there appears to be a glimmer of hope for the retail industry in China as it continues to battle the ongoing Coronavirus pandemic.

A small increase of 0.5 per cent has been reported in August, this can in part be attributed to a dramatic increase in sales for automobiles, which saw a rise of 11.8 per cent and sales of communication equipment which was an increase of 25.1 per cent.

Nomura’s Chief China Economist, Ting Lu remains optimistic about the future of the retail sector in the region commenting, “We expect a further, albeit gradual, recovery of the services sector, a steady improvement in retail sales and elevated fixed-asset investment growth.”

“We think that China’s economic recovery is on a reasonably firm footing now and should continue through the fourth quarter and into 2021, with solid investment growth, gradually recovering consumption momentum and resilient exports.” commented Louis Kuijs, Oxford Economics Head of Asia.