China’s retail sales were up 12.9 per cent in May.

That may sound like a healthy figure to retailers in mature markets but it is below the government’s full year target, indicating subdued consumption.

The sales were sightly higher than the 12.8 per cent of April, but below the government’s full year target of 14.5 per cent.

Retail sales reached 1.89 trillion yuan (US$306.8 billion). Catering sector’s sales grew 9.2 per cent while sales of other consumer products were up 13.3 per cent.

China’s GDP increased 7.7 per cent in the first quarter of the year.