Multiple sectors report robust holiday growth

China's consumption market gained momentum during the Spring Festival holiday spanning from Jan 28 through Tuesday, showing robust growth across multiple sectors including retail, tourism and cultural services, according to the latest data from the State Taxation Administration.

By analyzing sales data from value-added tax invoices, the administration found that overall sales revenue in consumer-related industries surged by 10.8 percent compared to the same period last year. This uptick was driven by strong demand in commodity consumption, up 9.9 percent year-on-year, and an even more impressive 12.3 percent increase in services consumption.

During the holiday, China's efforts in promoting large-scale equipment upgrades and old-for-new trade of consumer goods have acted as a rocket booster for sales, especially for household goods and appliances.

Consumers flocked to upgrade their homes, with sales of household appliances and audio-visual equipment soaring by 166.4 percent year-on-year. Household goods like televisions saw a staggering 226.8 percent year-on-year jump during the Spring Festival holiday, STA data showed.

The surge was further propelled by subsidies on smartphones, smartwatches and digital products, which helped consumers enjoy significant savings. The telecommunications sector also soared, with sales of devices like mobile phones and smart tech climbing by 181.9 percent year-on-year, it added.

Liu Dian, associate researcher at Fudan University's China Institute, said that Spring Festival is a significant traditional holiday in China and an important window to observe the trends of the Chinese consumer market.

"With consumption upgrading, Spring Festival spending is no longer limited to traditional needs, but is increasingly moving toward more experiential, personalized and high-quality choices," Liu said.

During this year's holiday, the country's tourism services were another bright spot, with revenues from the sector growing 37.5 percent compared to last year.

With traditional cultural activities making a comeback, and new leisure trends gaining traction, the Spring Festival holiday became a record-setting season for tourism. Sightseeing, park-related services and amusement parks saw year-on-year growth of 81.9 percent, 59.5 percent and 14.1 percent, respectively. The booming homestay industry also capitalized on the trend, with revenue from local accommodation rising by 12.6 percent year-on-year.

With the government prioritizing domestic consumption as a key economic driver, Liu predicted that China's consumer market is expected to continue its strong momentum through the year.

"China has placed expanding domestic demand as a top priority, providing strong policy support for the development of the consumer market in the coming months to come," Liu added.