China’s retail sales of gold, silver and jewellery grew at a slower pace in July compared to previous months of strong recovery, the latest report from the country’s National Bureau of Statistics revealed. 

Government data showed that jewellery sales in July rose 14.3 per cent and 52.8 per cent from January to July. By comparison, sales in June increased by 26 per cent while first-half figures were up 60 per cent. 

Overall retail sales jumped 8.5 per cent in July year on year, more sluggish than the 12.1 per cent growth in June. According to international consulting firm Deloitte, this was the slowest growth in retail sales since December 2020. 

With the Delta variant wreaking havoc around the world, including in China, the local government is taking significant steps to quell the outbreak in numerous locations around the country. These measures are affecting economic activity, Deloitte said.

“Retail sales fell on a month-to-month basis. The government acknowledged that restrictions imposed to fight the spread of the virus had undermined consumer mobility and spending,” noted Deloitte. “China’s zero-tolerance policy toward the virus has meant severe restrictions in many locations in response to even modest outbreaks.” 

The company added that Covid-19 will be the most important factor driving China’s recovery going forward.