BEIJING: Retail sales of consumer goods, a major gauge of Chinese consumption strength, expanded at a quick pace in the first half of the year (1H23), as an ongoing economic recovery and increased incomes pushed consumers to spend generously.

       Retail sales of consumer goods grew 8.2% year-on-year (y-o-y) between January and June to touch 22.76 trillion yuan (US$3.17 trillion or RM14 trillion), 2.4 percentage points higher than that of the first quarter, according to the National Bureau of Statistics (NBS).

       In June alone, retail sales rose 3.1% y-o-y, data from the NBS showed.

       “In general, consumption potential has been gradually released in the first half, and consumption maintains a good momentum of recovery, giving a boost to the country’s economic growth and people’s living standards,” NBS spokesperson Fu Linghui said.

       With a contribution to economic growth of 77.2%, consumption has played an increasingly prominent role in driving the economy in the first half, Fu said.

       “As society and the economy fully resume normal operations, the economy is recovering, consumption scenarios are expanding, policies to promote consumption are taking effect, spending by residents is steadily growing, and market retail sales are accelerating,” he added.

       Travel and contact-based service consumption climbed in the first half, with dining out, communication and tourism activities ballooning, Fu said.

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       The catering sector saw revenue soar 21.4% y-o-y.

       NBS data showed that the trend of consumption upgrade has extended.

       Retail sales of gold, silver and jewellery, as well as of sports and recreational goods, increased by 17.5% and 10.5% y-o-y, respectively, in the first six months.

       Online retail sales remained a bright spot, jumping 13.1% y-o-y to top 7.16 trillion yuan (RM4.5 trillion).

       The online retail sales of physical goods rose 10.8% y-o-y, accounting for 26.6% of the total retail sales of consumer goods.

       Fu said green and digital consumption have become the new drivers of consumption growth.

       He said there has been a 37.3% y-o-y surge in sales of new energy passenger vehicles, surpassing three million units in the first half.

       “For the entire year, there are plenty of favourable conditions to bolster consumption growth, and the consumption will continue to expand,” Fu said.

       He cited factors such as a better employment situation this year, which will increase the income of urban and rural residents and strengthen their spending power, and more significant underpinnings for the consumption uptick prompted by new consumption scenarios.

       Going forward, China will further unleash consumption potential, help increase incomes of urban and rural residents, continue implementing policies to boost consumption, and foster and expand new forms of consumption to promote stable, sustainable and healthy economic development, Fu added.

       China’s gross domestic product (GDP) grew 5.5% y-o-y in the first half to reach 59.3 trillion yuan (RM37.6 trillion).

       In the second quarter, the country’s GDP expanded 6.3% y-o-y, according to the NBS. — Xinhua