In addition to a variety of revenue groups, Zhang claimed that China’s intake trend this year is polarized across sectors because service consumption, such as concerts, tourism, and catering, has outperformed the sale of goods due to worsening economic conditions.
Due to the high demand during the summer break, Sandalwood statistics revealed that the entire booking price on two significant Foreign travel websites, Trip.com and Tongcheng Travel, hit a record high in July.
Despite the slightly waning momentum in August, it continued to grow by two digits: in the first half of that month, bookings on Trip.com increased by 85 % by value, year over year, and on Tongcheng Travel by 60 %.
According to statistics compiled by Wind, a Chinese economic data provider, the subway passenger level in some major cities has also been significantly higher than pre-pandemic levels in recent months, though that of the leading three cities of Beijing, Shanghai, and Guangzhou has not yet entirely recovered to 2019’s levels.
This year, the summer box company information also reached a brand-new higher. Dengta, a supplier of information for the film industry, reports that from June to August, the box company in China reached 20.62 billion rmb( US$ 2.83 billion ), up from the previous record of 17.78 billion.
However, extraneous factors, like the timing of festivals, have a significant impact on like high-frequency data, according to Lu Ting, main China economist at Nomura.
He added that movie ticket costs are even higher than before the pandemic and that” for the box office, it is highly relevant to the videos that are on show, so we tend to not jump to any conclusions on the business simply based on that.”
According to Lu, the increase in train ridership is also related to the recent boom in system construction, which has resulted in the opening of new metro lines in Chinese cities.
The increase in consumer spending in hospitality and entertainment, which is largely driven by a pent-up need to get out and de-stress following COVID – 19 lockdowns, is unlikely to be responsible, according to Dan Wang, chief analyst at Hang Seng Bank China.
Despite being highly apparent, she claimed that those parts were not columns of China’s economy due to their low shares and low growth. In the end, household income, which is influenced by total economic growth, controls those non-essential consumptions.
She continued,” If you are looking at any place other than housing, your time is being wasted ,” in reference to China’s economy.
The business regained some ground in July after a downturn in June, according to economists from Capital Economics who measure progress by tracking China’s industrial production, construction exercise, traffic volume, property and car sales, and electricity consumption.
However, they noted in a statement from late August that” the big picture is that productivity has recently leveled off and that unless policy support is ramping up rapidly, the economy could tip into droop.”
” For a while, issues in the real estate market may undermine confidence among consumers and businesses. Additionally, the threats to imports continue to be negative. The state has reacted by offering some scheme assistance. However, it continues to be very shy and slow-moving.
Despite Beijing’s relaxing methods, high-frequency information on the real estate market, such as the volume of new household income in major cities, has remained poor and not significantly improved, according to academics.