SHANGHAI'S retail sales increased 19.5 percent from a year earlier in June, after a rise of 18.9 percent a month earlier, according to a panel report of the Shanghai People's Congress yesterday.

The World Expo has driven the fast pace in retail sales growth, said Zhou Bo, director of the Shanghai Development and Reform Commission.

More than 21.5 billion yuan (US$3.17 billion) was spent on licensed Expo products in the two months since the event began on May 1. The amount surpassed the previous estimate of 20 billion yuan for the whole 184-day event.

Meanwhile, consumption at the World Expo site climbed to 530 million yuan in June, up from 410 million yuan in May.

In the first half, Shanghai's retail sales rose 17.5 percent to 292.1 billion yuan.

Zhou said the city's economy will moderate in the second half due to less prosperity in the stock and property markets.