China’s retail sales of goods and services rose 2.6% year-on-year from January to July, driven by a 5% expansion in service consumption as consumer demand shifts toward lifestyle enrichment.

Spending on travel consulting, cultural, and sports services grew over 10%, while government trade-in programs pushed new energy vehicle (NEV) penetration to a record 65.1% in July.

Rural retail sales grew 2.4% outpacing urban growth by 1.3 percentage points as expanded county e-commerce networks narrowed the urban-rural consumption gap. These trends highlight a broader transition from functional consumption to sustainable, high-quality living standards.

Source: People’s Daily