China's retail sector delivered a surprising boost to economic confidence in May, with sales climbing 6.4% year-on-year — the strongest growth since December 2023. The National Bureau of Statistics reported Monday that consumer spending smashed both April's 5.1% increase and analysts' 5% forecast, signaling renewed momentum in domestic demand.
Holiday Boom and Policy Push Drive Growth
The Labor Day holiday's travel and shopping frenzy, coupled with government subsidies for appliance trade-ins, fueled the uptick. A 40% year-on-year surge in duty-free shopping in Hainan and increased foreign tourist arrivals — facilitated by China's expanded visa-free entry program — added to the spending spree.
E-Commerce Giants Accelerate Summer Sales
Major platforms like JD.com and Alibaba contributed to the momentum by launching their "618" mid-year shopping festival earlier than usual, offering steep discounts on electronics and home goods. This strategic shift extended the traditional May consumption window, particularly benefiting appliance retailers reporting 20-30% sales jumps.
