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.