China's Service Retail Sales Rise 5.6% in Jan-Apr as Tourism and Culture Drive Double-Digit Gains
Updated
Updated · People's Daily · May 25
China's Service Retail Sales Rise 5.6% in Jan-Apr as Tourism and Culture Drive Double-Digit Gains
2 articles · Updated · People's Daily · May 25
China’s retail sales of services grew 5.6% year on year in the first four months of 2026, 0.1 percentage point faster than in the first quarter and ahead of goods retail sales.
Double-digit gains in tourism consulting, rental, transport-related, and cultural, sports and leisure services powered the increase as travel, events and experience-led spending strengthened.
61.36 billion yuan in Qingming holiday tourism spending and 185.49 billion yuan over May Day showed policy support and holiday demand lifting travel, accommodation and related consumption.
6.5 billion domestic trips and 6.3 trillion yuan in tourism spending in 2025 underline a broader shift from goods-led purchases toward higher-quality services, supporting China’s domestic-demand and economic-upgrade goals.
Can a domestic tourism boom shield China's economy from the escalating Iran war and soaring energy prices?
With services booming but overall retail weak, is China's economy rebalancing or masking a deeper consumer crisis?
Facing US chip sanctions, can China's plan to optimize existing computing power truly secure its AI ambitions?
Service Consumption Powers 63.2% of China’s Economic Growth in 2026: Digitalization, Experience, and Sustainability at the Forefront
Overview
In early 2026, China experienced a remarkable surge in service consumption, with the service industry becoming the main engine of economic growth. The value-added output of services made up 61.7% of GDP and contributed 63.2% to overall economic expansion in the first quarter. This strong performance was marked by rapid revenue growth across major service sectors, driven by digital technology and rising demand for consumer services. The trend toward digital empowerment and accelerated growth in consumption-driven services highlights the service sector’s expanding influence and its central role in supporting China’s steady economic recovery.