China Consumption Monthly Roundup | June 2023 Chartbook
The Conference Board uses cookies to improve our website, enhance your experience, and deliver relevant messages and offers about our products. Detailed information on the use of cookies on this site is provided in our cookie policy. For more information on how The Conference Board collects and uses personal data, please visit our privacy policy. By continuing to use this Site or by clicking "OK", you consent to the use of cookies. 

China Consumption Monthly Roundup | June 2023 Chartbook

June 21, 2023 | Report


Our Monthly Consumption Roundup tracks near-term consumption trends and underlying key drivers for China. Learn more about the key highlights for June.

Insights for What’s Ahead:

The consumption recovery remains sluggish and uneven. Offline and online retail sales continued growing at double digit rates y-o-y in May, but this was driven by the very low base last year, and growth was slower when compared to April. Yet, on a m-o-m basis, growth in retail sales bounced back to positive territory. Spending on consumer services continued experiencing robust growth, helped by a strong rebound in travel related spending during the May holidays. Looking at consumer spending on big-ticket items, passenger car sales improved in May, but sales of new residential housing floor space continued to weaken. Meanwhile, household savings continue to grow.

Looking ahead, the fundamentals, as we have laid them out before, remain unchanged: a sustained pick-up in consumer spending necessitates a significant improvement in consumer confidence levels. This, in turn depends on labor market improvements, thus improved household income, and on the stabilization of the property sector. However, the property market continues facing significant challenges, and so far, there are no strong signs that labor market weakness is easing meaningfully. Hiring intentions are mixed but are generally slowing. Job creation is picking up modestly, but remains well below pre-COVID levels, while unemployment among 16 to 24-year-olds continues to worsen, climbing to a record high of 20.8 percent in May.

AUTHOR

AnkeSchrader

Former Research Director, Asia
The Conference Board


OTHER RELATED CONTENT

PRESS RELEASES & IN THE NEWS

hubCircleImage