Consumer spending in China during the Lunar New Year saw a modest increase, influenced by extended holiday measures and government efforts to stimulate demand.
During the recent Lunar New Year celebrations, early data released by China’s Ministry of Commerce indicated a modest rise in consumer spending, spurred by extended holiday periods and various stimulus measures aimed at bolstering domestic demand. Specifically, the average daily sales at major retail and catering firms reported an 8.6 percent increase year-on-year over the initial four days of the holiday, reflecting a gradual recovery in consumption patterns following previous economic challenges.
Moreover, officials observed significant increases in both foot traffic and sales revenue across monitored commercial districts, with foot traffic increasing by 4.5 percent and sales revenue by 4.8 percent in the first three days of the holiday. The highest activity was recorded on the first day, with a notable rise of 23.2 percent in foot traffic and a 33.2 percent increase in sales revenue compared to the previous year, suggesting that consumers were eager to engage in holiday spending despite broader economic uncertainties.
The Ministry of Commerce also initiated a nationwide consumption campaign leading up to the Lunar New Year, with local governments contributing additional efforts to drive consumer engagement. This environment reflects the Chinese government's ongoing commitment to stimulating domestic demand, as they navigate economic recovery strategies in the wake of challenging market dynamics.
