(Yicai Global) Nov. 15 -- China’s retail sales unexpectedly fell for the first time in five months in October as consumption sagged.

Retail sales of consumer goods fell 0.5 percent from a year ago to CNY4 trillion (USD571.4 billion) last month, the first drop since May, following a 2.5 percent increase in September, according to data the National Bureau of Statistics published today. Chief economists polled by Yicai Global had expected a 1.7 percent gain.

In the 10 months ended Oct. 31, retail sales edged up 0.6 percent from a year ago to about CNY36.05 trillion (USD5.11 trillion), NBS spokesperson Fu Linghui told reporters at a press briefing.

The impact of the pandemic on the market is short-term and external, Fu said, stressing that China still has many favorable conditions for a recovery in consumption.

First, the increasing size and upgrading of the country’s consumer market remains unchanged, Fu pointed out. With a population of 1.4 billion and a per-capita gross domestic product of more than USD10,000, the market is developing rapidly and has huge potential.

Second, the economy's gradual recovery, underpinned by government support, will expand employment and boost incomes, enhancing people’s willingness and ability to consume, he said.

Third, China has brought in policies to expand consumption, and fourth, innovation in consumption patterns will cultivate new growth drivers, Fu noted. For example, since the main outbreak of the coronavirus, online education, meetings, and medical treatment, as well as livestreaming, have all grown rapidly, injecting new vitality into consumption.

Editor: Futura Costaglione