China's retail sales growth eased slightly in June, indicating domestic demand is stabilizing although it remained weak.

Retail sales expanded 13.7 percent from a year earlier to 1.65 trillion yuan (US$261 billion) last month, almost flat with the pace of 13.8 percent in May, the National Bureau of Statistics said yesterday.

In the first half of this year, sales rose 14.4 percent to 9.82 trillion yuan.

"Excluding the price factor, China's retail sales may have grown faster in June than that in May," said Sheng Laiyun, a bureau spokesman. "It indicates that China's consumption has stabilized thanks to supportive policies."

With more stimulus in the pipeline, Sheng said China's retail sales growth may pick up in the near future and people may buy more value-added products to boost consumption.

Tang Jianwei, an economist at the Bank of Communications, said supportive policies and easing inflation will shore up retail sales in the second half.

But sales growth will depend largely on property and vehicles - two markets that are dogged by uncertainties, Tang added.

Sales of communication appliances, mobile phones in particular, continued to lead other purchases by rising 30.4 percent from a year earlier in June. Auto sales stayed weak, rising by 6.2 percent. But furniture sales jumped 28.7 percent last month, thanks to signs of recovery in the realty market.