Subsidies help boost consumption in China

By Amelia Repke

It seems that there are some positive signs that Chinese economy which has been struggling with lackluster growth is showing a welcome respite, thanking for the spike in sales growth which was boosted by government subsidies.

China’s retail sales in May grew at their fastest rate since late 2023, as government subsidies helped push consumption. According to data from National Bureau of Statistics showed Monday, retail sales last month jumped 6.4% from a year earlier, sharply beating analysts’ estimates for a 5% growth and accelerating from the 5.1% growth in the previous month.

The country’s industrial output slowed to 5.8% year on year in May from 6.1% in the prior month. Fixed-asset investment, reported on a year-to-date basis, expanded 3.7% this year as of May from a year earlier, slowing from a 4% growth in the first four months. Within the fixed-asset investment, the contraction in property investment deepened, falling 10.7% in the first five months.

The rise of retail sales came as a surprise, attributing to the ongoing consumer goods trade-in program, a surge in online shopping ahead of “618” e-commerce event as well.

Although the positive signs in consumption, Chinese economy has been facing challenges in terms of maintaining stable growth since the second quarter, due to heightened uncertainty in trade policies among factors dragging growth, as well as falling property prices could dampen consumer sentiment. It could be critical for government to step efforts in terms of stronger policy support in order to sustain the recovery effectively.

Subscribe to Unlock this Article

Complete digital access to quality Glebors financial topic with expert analysis from industry leaders.

Glebors Financial Become an Glebors subscriber

Make informed decisions with the Glebors.Keep abreast of significant corporate, financial and political developments around the world. Stay informed and spot emerging risks and opportunities with independent global reporting, expert commentary and analysis you can trust.

  • Financial reports are independent global financial research reports that you can trust. The information keeps pace with important companies around the world, global financial and political dynamics, independent insights and unique perspectives, helping you catch up with the latest information and identify the potential risks and opportunities.
  • Our financial special reports use professional knowledge to fully understand the market situation, break down the perspectives of experts, and rationally analyze data to help you eliminate noise, accurately identify the changes in political, economic and social trends, and fully aware of the risks and grasp the opportunities.
  • Our goal is to help shape the uniqueness of each research space we are involved in. Our research provides readers with new insights in terms of the global economy, financial markets, asset classes and risk management. We will continue to present new insights into global markets and industries.

"Insight of the global economy, dig into more ideas, analyze the global financial dynamics and the risks of political situation from a strategic, scientific and rational perspective, based on economic data and more than 20 years of financial intelligence."

Financial Reports

If you want to know more details to provide support for your investment and business activities, this financial report that we have selected for you can give you what you want, please subscribe to read it. Glebors Global Finance aims to provide business elites and decision makers with daily business news, data interpretation, in-depth analysis and commentary.

Glebors Global Finance’s amount of financial information digs into deeply major events and economic data that have a huge impact on the global economy, based on in-depth industrial research and special reports, with a truly global perspective。 Financial reports have become "must-read" financial information for senior managers. Gribs Global Finance currently has more than2.85 million Chinese readers and more than 3.5 million overseas readers, including more than 600,000 high-end member readers.

Member Readers

High-end Member Readers

Member Readers

Ordinary Member Readers

Leave a Reply

Editor - Viewpoint

Calia McBean

Get Every Newsletter

We are not gonna make spamming

Calibrate The Trajectory Of China Economy