Due to the national holiday, this month’s China Monthly is an abridged version. The week-long holiday looks to have had a better-than-expected performance in retail and dining. However, we believe it is partially driven by rising food prices, particularly soaring pork prices. Retail sales have actually slowed in recent months, pointing to consumers exercising caution on spending amid a slowing economy, though food-related sales have been comparatively resilient relative to the overall economy.
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