China's retail sales grew 13.8 percent in August as rising incomes spurred consumer spending in the world's fastest-growing major economy.

Sales rose to 607.7 billion Yuan (76 billion U.S. dollars), the highest value in three months, after climbing 13.7 percent in July, the Beijing-based statistics bureau said yesterday, according to Bloomberg News. That matched the median forecast of 21 economists surveyed by Bloomberg.

Rising sales at retailers such as Gome Electrical Appliances Holdings Ltd may shield the economy from a sharp slowdown as the central government curbs investment. China has raised minimum salaries and increased welfare spending to boost consumption and reduce China's dependence on exports and spending on factories.

“Retail sales are growing at a healthy pace,” said Vincent Kwan, chief economist at Hang Seng Bank in Hong Kong. "This is consistent with China's objective to achieve a more sustainable and balanced economic growth."

In the first eight months of the year, retail sales increased 13.5 percent from the same period last year to 4.85 trillion Yuan.

Gome, China's biggest electronics retailer, on August 17 said profit jumped 45 percent in the first half as more affluent consumers splurged on televisions, air-conditioners and digital cameras.

Sales of household electronics jumped 20.4 percent in August after rising 12.5 percent in July, the report said. Spending on jewelry rose 30.3 percent, accelerating from 22.2 percent growth in the previous month.

The central bank on August 19 raised benchmark lending and deposit rates simultaneously for the first time in two years, an increase aimed at curtailing an investment boom that it says may fan inflation and leave factories idle. Fixed-asset investment in towns and cities rose 21.5 percent last month from a year earlier, slowing from 27.4 percent the previous month.

（Source：Shanghai Daily）