China retail sales growth is strongest in rural areas, with urban area growth continuing to decline.

China’s National Bureau of Statistics announced Wednesday that retail sales overall grew 10 per cent in April, year-on-year, to 2.24 trillion yuan, or US$366 billion.

The official figure disappointed economists who had been forecasting a 10.5 per cent rise. Growth measured in the first four months of the calendar year was 10.4 per cent.

Most of the damage appears to be being done in urban areas.

Year-on-year growth in rural areas was 11.4 per cent in April and 11.5 per cent for the four months.

But in urban China, April growth was just 9.8 per cent, and 10.2 per cent for the full year to date.

Other economic indicators, however, were only slightly more encouraging. Industrial output rose 5.9 per cent in April, compared with 5.6 per cent in March. Economists had projected six per cent.

Fixed asset investment grew 12 per cent over the first four months, below predictions of 13.5 per cent.