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China consumption
EconomyEconomic Indicators

China’s retail sales rise as consumption takes centre stage amid tariff blitz

January and February saw a 4 per cent increase in retail sales, stirring hopes domestic consumption can make up for a shortfall in exports

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People walk past a festive display on a screen outside of a Beijing shopping mall during the Lunar New Year holiday on February 1. Photo: AFP
Orange Wangin BeijingandSylvia Main Hong Kong

China has reported a 4 per cent growth in consumption in the first two months of 2025, a modest increase that keeps the pressure on policymakers as China strives to achieve its ambitious annual economic growth target of “around 5 per cent”.

The 4 per cent jump in retail sales for January and February, released by the National Bureau of Statistics (NBS) on Monday, was up from the 3.7 per cent growth recorded in December and below the 4.5 per cent forecast by Chinese financial data provider Wind. The metric is a closely watched indicator for national consumption.

“A package of existing and incremental policies continued to take effect … The national economy got off to a steady start with new and positive development momentum,” the bureau said.

“However, we should be aware that the external environment is increasingly complex and severe, domestic effective demand is weak, some enterprises face difficulties in production and operation and the foundation for sustained economic recovery and growth is not strong enough.”

Data for January and February is combined to smooth out the impact of the Lunar New Year holiday, which falls at a different time each year.

Leading bodies of China’s state apparatus and the ruling Communist Party issued a 30-point plan to stimulate consumer spending on Sunday, signifying consumption’s increasing importance to the overall economy.
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