China’s Spring Festival Drives Record Consumption, Signaling Economic Resilience
China’s annual Spring Festival holiday, a traditionally significant period for family gatherings and celebrations, has once again delivered a substantial boost to the nation’s economy. Recent data indicates a surge in both domestic tourism and consumer spending, reinforcing a positive trend in the country’s overall economic recovery.
Official figures released on February 8, 2025, reveal that sales of key retail and catering enterprises across China grew by 4.1 percent year-on-year during the holiday period. This increase underscores a strong consumer appetite and a willingness to spend, even amidst ongoing global economic uncertainties.
The Ministry of Commerce reported particularly strong sales in several key sectors. Food, festive products, and green and smart home appliances were in high demand. Notably, sales of household appliances and communication equipment – including mobile phones and tablets – jumped by over 10 percent compared to the same period last year. This suggests a growing consumer interest in upgrading their living standards and embracing technological advancements.
Beyond retail, the service sector also experienced a significant upswing. Dining, travel, and cinema attendance all saw increased activity. Catering firms monitored by the commerce ministry recorded a 6.2 percent year-on-year increase in sales. The box office also achieved a record high, with total revenue reaching 9.51 billion yuan (approximately $1.3 billion) during the Spring Festival holiday.
He Yongqian, spokesperson for the Ministry of Commerce, emphasized the resilience of the Chinese consumption market. “China’s consumption market has indicated a strong resilience, great potential and sufficient vitality, and the basic trend of recovery and improvement remains unchanged,” she stated during a recent press conference. She further noted that the expansion of the trade-in policy for consumer goods, coupled with various promotional activities, is expected to contribute to continued steady growth in the first quarter of the year.
The impact of the Spring Festival spending spree was also evident at the regional level. Shanghai, for example, saw combined online and offline sales reach 46.5 billion yuan between January 28 and February 3, according to the Consumer Market Big Data Laboratory (Shanghai), affiliated with the Fudan Development Institute.
The success of the 2025 Spring Festival shopping season extends beyond mere economic figures. Experts suggest it represents a fusion of traditional customs and modern technology, creating a unique and engaging experience for consumers. E-commerce platforms played a crucial role in bridging domestic and international markets, offering Chinese consumers access to global goods while simultaneously showcasing Chinese products to international buyers.
Data from earlier in the year, specifically the period from January 28 to February 4, showed 501 million domestic trips were made, a year-on-year increase of 5.9%. Total domestic travel expenditure during this time reached 677.02 billion yuan, representing a 7.0% increase year-on-year. This surge in travel further contributed to the overall economic boost experienced during the holiday.
The robust spending during the Spring Festival is seen as a positive indicator for China’s economic outlook, suggesting a continued recovery and a strong foundation for future growth. The holiday’s success demonstrates the potential of domestic demand as a key driver of economic stability and influence.
