China’s Lunar New Year sees modest rise in consumer spending, early data shows

Consumer spending during China’s Lunar New Year rose modestly this year, according to early official data, as authorities extended the holiday and stepped up stimulus measures to support domestic demand.

Average daily sales at major retail and catering firms rose 8.6 per cent year on year over the first four days of the break, Ministry of Commerce data showed.

Across 78 pedestrian shopping streets and commercial districts monitored by the ministry, foot traffic and sales revenue grew 4.5 per cent and 4.8 per cent, respectively, over the first three days.

On the holiday’s first day, those figures had surged 23.2 per cent and 33.2 per cent year on year. More comprehensive official data will be released on Tuesday.

This year’s Lunar New Year featured a nine-day official break, longer than the usual seven to eight days. The festival is one of China’s peak spending seasons – spanning food, festive goods, entertainment and travel – and drives the world’s largest annual human migration as hundreds of millions of people journey home.

Officials have cast the Year of the Fire Horse as one of “optimism and opportunity”, and Beijing had sought to leverage the holiday to boost domestic demand in an economy long driven by exports.

Ahead of the break, the Ministry of Commerce launched a nationwide consumption campaign, with local governments allocating 2.05 billion yuan (US$297 million) in shopping vouchers, subsidies and cash incentives.

South China Morning Post