China's retail goods sales rose more than expected in the first two months of 2026, indicating improved consumer sentiment during the country's most important annual celebration, the Lunar New Year holiday [1]. The nine-day Lunar New Year holiday generated 803 billion yuan ($116 billion) in tourism spending across 596 million domestic trips, although spending per trip was slightly down compared to the previous year [1]. Goods sales grew by 2.8% during this period, but this growth rate was still the weakest for the January-February period in decades, excluding the COVID years [1].
The data suggests that while consumer activity received a boost from the holiday, underlying retail sales growth remains subdued compared to historical norms [1]. The increase in tourism spending and domestic trips highlights the importance of the Lunar New Year in driving short-term economic activity, but the lower spending per trip points to cautious consumer behavior [1].
No forward-looking statements or analyst opinions were provided in the article [1].
CONCLUSION
China's retail sales exceeded expectations in early 2026, driven by Lunar New Year festivities, but the growth rate remains historically weak. Despite robust tourism spending, cautious consumer sentiment persists, signaling only a moderate market impact.