Breaking News
0

China's Holiday Spending Slows, Underlining Tough Start to 2019

Economic IndicatorsFeb 11, 2019 00:36
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Bloomberg. A figurine of a pig stands on display ahead of Lunar New Year in Hong Kong, China, on Sunday, Feb. 3, 2019. Hong Kong celebrates the Lunar New Year holiday on Feb. 5-7 this year. Photographer: Paul Yeung/Bloomberg

(Bloomberg) -- The downward pressure on China’s consumption persisted over the Lunar New Year holiday, the annual festival when people travel, shop, and give gifts or money.

People in China spent 1.01 trillion yuan ($149 billion) at restaurants, shopping malls and online outlets over the the week-long holiday, according to the Ministry of Commerce. That was 8.5 percent higher than during last year’s festive period, but the slowest increase since at least 2011.

Increasingly frugal Chinese consumers are sending chills through global investors, with the pullback in spending hitting the profits of companies such as Apple Inc (NASDAQ:AAPL)., Swatch Group (SIX:UHR) AG and luxury car makers. Weaker growth, the trade war with the U.S., and a crackdown on debt all undercut momentum in 2018, sending auto purchases into a contraction for the first time in almost three decades and retail sales growth to the slowest pace since 2002.

Spending at tourist venues rose 8.2 percent to 513.9 billion yuan, the state broadcaster CCTV said, citing data from the Ministry of Commerce, slower than the 12.6 percent rise last year. Domestic box office revenue was 1 percent higher than in 2018, according to a report in The Paper, which cited statistics from a cinema ticketing service platform of Alibaba (NYSE:BABA) Pictures.

Those who are still shopping are increasingly doing it online, with JD.com reporting a 43 percent jump in sales around the holiday versus a year earlier. Cellphones, computers and home appliances were at the top of shopping lists, and there was a surge in purchases of kitchenware and furniture, according to a report from the second largest e-commerce site in the nation.

Spending growth in smaller cities jumped 55 percent on Alibaba Group Holding Ltd.’s Tmall, faster than in major metropolises, where residents are being squeezed by higher housing prices. Tourists chose Hong Kong, Thailand and Macau as their top overseas destinations, according to Alibaba’s online tourism site. The U.S. was the seventh most popular spot, even amid the trade tensions.

China mainland visitors to Macau reached almost 900,000 during the week-long Chinese New Year holiday, climbing 26 percent from last year’s festive holiday, according to Macau’s tourism office. That was more than double last year’s growth.

The week-long Lunar New Year falls on different dates in January or February each year. During the holiday, hundreds of millions travel to their hometowns or go overseas, visit relatives and dine out. This year’s holiday was Feb. 4-10, while it was Feb. 15-21 in 2018.

(Updates with data from JD.com and Alibaba.)

China's Holiday Spending Slows, Underlining Tough Start to 2019
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email