Boom or bust? China’s Lunar New Year spending data is in – here is what we know
South China Morning Post
by Mia NurmamatFebruary 23, 2026
AI-Generated Deep Dive Summary
China’s Lunar New Year spending data reveals a modest rise in consumer activity this year, driven by extended holidays, government stimulus measures, and shifting spending patterns. Early figures show an 8.6% year-on-year increase in average daily sales at major retail and catering firms over the first four days of the festival. Foot traffic and sales revenue on monitored shopping streets grew 4.5% and 4.8%, respectively, while the holiday’s first day saw a significant surge of 23.2% and 33.2%. These numbers reflect the government’s efforts to boost domestic demand in an export-driven economy.
The Lunar New Year is one of China’s most critical spending periods, spanning food, festive goods, entertainment, and travel. This year’s nine-day official break, longer than usual, has been described by officials as an “optimism and opportunity” season. To leverage this, Beijing launched a nationwide consumption campaign, distributing 2.05 billion yuan (US$297 million) in shopping vouchers, subsidies, and cash incentives across local governments. These measures aim to stimulate spending during the peak holiday season, which also coincides with the world’s largest annual human migration as hundreds of millions travel home.
However, not all sectors saw strong performance. The box office, a key indicator of entertainment spending, remained weak, reflecting broader shifts in consumer preferences. As more people prioritize travel and experiences over traditional purchases, the government continues to adapt its strategies to align with changing trends. The data underscores China’s ongoing efforts to rebalance its economy and rely less on exports, focusing instead on domestic consumption as a driver of growth.
This year’s Lunar New Year spending data offers valuable insights into China’s economic recovery trajectory. While retail and catering sectors showed resilience, the weaker box office performance highlights the need for businesses to adapt to evolving consumer behaviors. The government’s emphasis on domestic demand aligns with global trends, where countries are increasingly looking inward to
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Originally published on South China Morning Post on 2/23/2026