On June 21, 2026, citizens in Guangzhou engaged in purchasing and scratching instant lottery tickets amid discussions about China’s economic trends. Recent data indicates a continued slowdown in consumer spending across the country, particularly highlighted during the annual "618" online shopping festival, which ran from May 13 to June 18. According to retail data provider Syntun, online sales during this period rose only 4% compared to a significant 15.2% growth in the previous year.
This trend points to persistent weaknesses in household spending, even as sectors like exports and technology show stronger performance. Retail sales experienced a decline of 0.6% in May, marking the first drop since the easing of pandemic restrictions in 2022. Goldman Sachs analysts have noted a widening gap between high-tech and consumer sectors, predicting a continued trend. The firm’s revised forecast for second-quarter GDP growth now stands at 4.5%, slightly down from earlier estimates.
The "618" shopping festival provided insights into shifting consumer demand, with growth remaining muted despite efforts from major retailers. Total sales reached approximately 934 billion yuan ($137.86 billion), which included instant delivery orders and group purchases. Leading e-commerce platforms such as Alibaba’s Tmall, JD.com, and Douyin experienced minimal sales growth. Notably, the market for secondhand electronics surged by nearly 80%, revealing a shift toward lower-cost goods.
Consumer preferences appear to have changed, with increased spending on home cleaning services and health-related products. However, the impact of artificial intelligence on the economy remains uncertain, as potential job displacement could hinder recovery in the property market and consumer spending.
Why this story matters: The data reflects significant shifts in consumer behavior and highlights economic challenges.
Key takeaway: Consumer spending continues to weaken, diverging from growth in tech sectors.
Opposing viewpoint: While some sectors struggle, there is notable growth in secondhand markets and demand for AI-related products.
