economy
China's 618 shopping festival growth slows sharply as consumer spending malaise persists
The latest consumer data reinforce how consumption in China remains subdued.
TL;DR
- Online sales during China's 618 shopping festival grew by only 4% year-on-year, a sharp decrease from 15.2% in the previous year.
- This slowdown in consumer spending is a weak spot in China's economy, contrasting with stronger performance in exports and tech sectors.
- Retail sales in May fell 0.6% year-on-year, the first decline since pandemic restrictions were lifted.
- Consumers are showing a preference for lower-cost goods and services, with secondhand electronics sales up nearly 80% and demand for home cleaning services surging.
- Goldman Sachs lowered its Q2 GDP growth forecast to 4.5% due to these persistent economic trends.