China’s consumer spending on recovery curve amid policy support

BEIJING, July 12 (Xinhua) — With the arrival of summer, China’s consumer spending has gradually warmed up, regaining vitality on the back of policy stimulus, a trend expected to continue as economic growth rebounds.

Industrial data unveiled Monday shows that auto sales in the country expanded 23.8 percent year on year in June, rebounding from a three-month declining streak. For market watchers, the uptick mirrors a broader revival in the retail sector.

Despite an upbeat start this year, retailers of the world’s second-largest economy have been come under pressure since March, with COVID-19 flare-ups disrupting normal business activities and denting footfall at diners and shopping malls.

The recovery curve came in May, when the country’s retail sales of consumer goods, a major indicator of consumption growth, posted a decline of 6.7 percent year on year, narrowing from the 11.1 contraction in April.

Guan Lixin, a researcher with the Chinese Academy of International Trade and Economic Cooperation, attributed the rebound to the concerted efforts of both government and business, saying that pent-up demand has been unleashed as supportive policies have been delivered, businesses reopened and consumer sentiment lifted.

To spur consumer spending, China has introduced a raft of policies, enticing consumers to open up their wallets and helping businesses survive and thrive.

Restaurant owners, retailers and other businesses susceptible to COVID-19 have been offered lower rents and platform commissions, as well as stronger financing support.