China’s economic expansion continues to be strongly supported by household consumption, with a notable shift towards service-oriented spending, according to government officials.
During the first half of 2026, consumer demand remained stable and service consumption grew at a faster rate than goods, reflecting an upgrade in consumption patterns. This trend was highlighted at the recent China Economic Roundtable hosted by Xinhua News Agency.
Key Drivers of Growth
- Final consumption expenditure contributed more to economic growth than capital formation and net exports, underscoring the resilience of China’s large consumer market.
- The service sector saw a 5.3% year-on-year increase in retail sales, outperforming goods consumption by 4.2 percentage points.
- Segments such as tourism, consulting, leasing, cultural, sports, and leisure activities experienced double-digit growth.
Wang Guanhua from the National Bureau of Statistics emphasized the rising importance of emotional and experience-based consumption. Activities like travel, concerts, live shows, and sporting events are increasingly popular, demonstrating the growing potential of service consumption among Chinese households.
Huang Hanquan, head of the Chinese Academy of Macroeconomic Research, noted that new consumption drivers are gaining momentum, helping to sustain economic growth as China embarks on its new five-year plan.
