China's Jan-Jul 2026 Consumption Data: Services Up 5.0%, Trade-ins Boost Upgraded Goods

On August 17, the State Council Information Office held a press conference to present the performance of the national economy in July 2026. Data showed that total retail sales of consumer goods and services in the January-July period rose 2.6% year on year, keeping the consumer market stable. During the same period, service retail sales grew 5.0%, 3.9 percentage points faster than goods retail sales, and the share of service consumption in overall consumption continued to rise.

In July, frequent extreme weather such as typhoons, heavy rain, and high temperatures affected offline consumption in some regions, and the growth rate of transport and travel services moderated. However, service consumption overall grew steadily. From January to July, retail sales of tourism consulting and rental services and of cultural, sports, and leisure services increased 11% and 10.1% year on year, respectively, while retail sales of communication and information services rose 11.9%. Service consumption had a strong spillover effect, with cultural and tourism consumption driving growth in surrounding catering, accommodation, and transport spending.

In goods consumption, retail sales of goods in the first seven months exceeded RMB 25 trillion, up 1.1% year on year. Basic necessities such as grain, oil, food, and beverages grew steadily, while retail sales of upgraded goods such as cosmetics and communication equipment grew rapidly. Driven by the consumer goods trade-in policy, demand increased for new-energy vehicles, energy-efficient home appliances, and smart home products. From January to July, retail sales of wearable smart devices more than doubled year on year, and retail sales of high-energy-efficiency home appliances grew by more than 30%.

New consumption formats continued to develop. In the first seven months, online retail sales of goods and services rose 4.8% year on year, with online goods retail sales accounting for nearly 30% of total goods retail sales. Retail sales at warehouse membership stores and unattended stores above a designated size both grew by more than 25%, and shopping mall retail sales achieved double-digit growth. In rural areas, retail sales of consumer goods rose 2.4% year on year in the January-July period, 1.3 percentage points faster than in urban areas. The 2.0 version of the departure tax-refund scheme took effect on July 1, boosting spending by overseas visitors, and in July the value of departure tax-refund goods increased substantially in many regions.