China’s service spending growth outpaces retail

China’s spending on services far outpaced purchases of physical goods in the first seven months of 2026, driven by robust demand for travel and entertainment, reports Caixin.

Service retail sales rose 5% year on year from January through July, compared with a 1.1% increase in retail sales of physical goods, according to the National Bureau of Statistics. Overall retail sales of consumer goods rose 1.2% to RMB 28.77 trillion ($4.3 trillion).

Much of the strength in services came from summer leisure spending. Revenue from tourism and cultural entertainment increased by more than 10%, while July box-office takings climbed more than 20% from a year earlier to above RMB 5 billion.