Yu Jianxun- The overall consumer market is growing steadily

In the first three quarters of the year, various regions and departments have actively implemented the decisions and plans set by the central authorities and the State Council. This has led to the successful launch of a series of policies aimed at expanding domestic demand and stimulating consumption, resulting in stable overall growth in the consumer market. Sales of essential goods and some upgraded items have shown positive momentum, while online consumption has surged rapidly, and the demand for service consumption continues to be released.

1. **Steady Market Growth with Rural Sales Outpacing Urban Sales**
In the first three quarters, the total retail sales of consumer goods reached 35.36 trillion yuan, marking a year-on-year increase of 3.3%. Analyzing quarterly performance, the third quarter saw a 2.7% growth in retail sales of consumer goods, which is a 0.1 percentage point increase compared to the second quarter. The effectiveness of the trade-in policy for old goods became evident, as retail sales in September rose by 3.2%, accelerating by 1.1 percentage points compared to August.

When looking at urban versus rural markets, retail sales in urban areas reached 30.59 trillion yuan, reflecting a year-on-year increase of 3.2%. In contrast, rural retail sales amounted to 4.77 trillion yuan, growing by 4.4%, which is 1.2 percentage points higher than urban growth. In September, urban retail sales grew by 3.1%, an acceleration of 1.3 percentage points from August, while rural retail sales increased by 3.9%, maintaining the same growth rate as the previous month.

2. **Majority of Product Categories Showing Growth**
In the first three quarters, over 70% of retail categories in enterprises subject to certain sales thresholds experienced year-on-year growth, with strong sales in basic and some upgraded goods. Notably, communications equipment and sports entertainment products saw substantial increases in retail sales, at 11.9% and 9.7%, respectively. For essential goods, the retail volumes for food, beverages, tobacco and alcohol, and traditional and Western medicines grew by 9.9%, 4.5%, 6.8%, and 4.7%, respectively.

In September, measures promoting the trade-in of old goods spurred strong sales in related sectors, particularly for automobiles and home appliances. The retail sales of automobiles among major enterprises rose by 0.4% year-on-year, reversing a six-month downward trend, while new energy vehicle sales grew rapidly. The retail sales for household appliances and audiovisual equipment soared by 20.5%, dramatically climbing by 17.1 percentage points compared to the previous month, with both energy-efficient and smart appliances enjoying double-digit growth.

3. **E-commerce Innovations Boosting Online Sales; Brick-and-Mortar Stores Showing Stability**
In the first three quarters, online retail sales of physical goods increased by 7.9%, outpacing the overall retail sales growth of 4.6%. Online sales accounted for 25.7% of total retail sales, up by 0.1 percentage points from January to August. New e-commerce models like live-streaming sales and instant retail are rapidly developing, significantly driving online consumption growth. In terms of related logistics, the postal and express delivery sector recorded a 22.5% year-on-year increase in volume from January to August.

Physical retail stores have continuously improved the consumption environment and enhanced consumer experiences, with most formats showing stable recovery. In the first three quarters, retail sales among convenience stores, specialty shops, and supermarkets grew by 4.7%, 4%, and 2.4%, respectively. Membership-based warehouse stores specializing in high-quality services and experiences have maintained double-digit growth in sales.

4. **Service Consumption Market Continues to Unleash Potential**
This year, ongoing consumer stimulation policies have begun to yield results, leading to innovative consumption scenarios and enhancing market vitality, effectively releasing the demand for service consumption. In the first three quarters, service retail saw a year-on-year growth of 6.7%, outpacing product retail growth by 3.7 percentage points.

The cultural and tourism markets remain active, driving significant growth in related sectors such as dining, transportation, and entertainment. Restaurant income rose by 6.2% year-on-year, while service consumption in transportation and recreational activities consistently exceeded overall service consumption growth rates. Data from relevant departments revealed that from January to August, national road passenger volumes increased by 9.2%, with commercial aviation and railway passenger turnover rising by 28.9% and 10%, respectively, and urban rail transit passenger volumes increasing by 12.3%. In the third quarter, performances of commercial shows (excluding entertainment venue shows) grew by 16.3% year-on-year, with box office revenues swelling by 41.1%.

While the overall consumption market maintains a growth trajectory, it is important to acknowledge that some product sales remain sluggish, and there is still room for improvement in residents’ consumption capabilities. Moving forward, it is vital to thoroughly implement the decisions made by the central authorities and the State Council, fully leverage the effectiveness of consumption-boosting policies to unlock consumption potential, enhance consumer capacity, and foster the growth of new consumption formats to facilitate sustained recovery in the consumption market.

(Author: Yu Jianxun, Director of the Trade and Foreign Economic Statistics Department of the National Bureau of Statistics)