China’s summer consumption booms, as strong momentum expected to remain a major economic booster: experts

Tourists visit a commercial street in Yuzhong District in southwest China's Chongqing Municipality, Feb 10, 2023. Chongqing has launched a variety of activities at nighttime to boost night economy since the beginning of this year. Photo: Xinhua

As the days get hotter and the sun sets later, the vibrant summer season has been injecting more vitality into China's economic revival, spurred by diversified seasonal consumption demand, from ways to cool down to shopping at bustling night markets.

Observers said that the consumption patterns that have emerged in the summer, such as the surging sales of air conditioners and related products, as well as busy night markets and tourism, all vividly demonstrate China's steady economic recovery in the consumption sector. The continuous revitalizing domestic demand will also shore up overall economic development.

Sales of products to cope with the heat have jumped online and at physical stores. From June 5 to Tuesday, sales of UV umbrellas on China's leading food delivery app Meituan grew by 115 percent year-on-year, while sales of sun hats were up 54 percent, along with a rise of 52 percent for sun protection shirts, Meituan said in a statement sent to the Global Times on Thursday.

Sales of air conditioners at the physical stores of Suning, one of China's leading retailers, rose by 35 percent year-on-year, and sales of fans grew 42 percent on a yearly basissince May 1,according to data sent to the Global Times on Thursday.

The night economy has also become a popular way for Chinese consumers to spend their leisure time after work, with consumption scenarios expanding from dining at popular restaurants to gaming at night markets.

A Beijing-based white-collar worker surnamed Wang told the Global Times on Thursday that she has seen more consumers line up at a popular hot pot restaurant near her home since the temperatures rose, and the lines are often extended until late into the night.

These new consumption trends, along with the booming culture and tourism sector, are being driven by higher incomes and the country's consumption upgrading, Cong Yi, a professor at the Tianjin School of Administration, told the Global Times on Thursday.

The active summer spending also reflected growing confidence among Chinese consumers, said Zhang Yi, CEO of iiMedia Research Institute.

Cong and Zhang said that policy support has helped drive the consumption boom, with dedicated measures such as large-scale equipment renewals and trade-ins of consumer goods taking effect.

During the just-passed Dragon Boat Festival holiday, the number of trade-in orders for large home appliances increased by 218 percent year-on-year for Suning, per the company's data.

Cong said that relevant authorities and localities have been actively supporting the development of emerging consumption industries, such as the digital economy, culture and tourism, and sports events. Such policy guidance will provide strong support for China's economic restructuring and consumption upgrading.

Zhang told the Global Times on Thursday that the strong momentum signals a significant increase in consumption's contribution to the economy, and the momentum from the summer consumption peak will help sustain overall economic development for the rest of 2024.

Cong agreed, stressing that he remained confident that China would meet this year's GDP growth target of about 5 percent, thanks to the country's mega market and the stable fundamentals for economic growth, on top of the bolstered domestic demand.