China holiday spending shrinks as consumer sentiment stays weak

Expenditures by Chinese consumers failed to pick up during the Dragon Boat Festival holiday even though more people hit the road, reflecting subdued consumer confidence in an economy reeling from U.S. tariffs, despite a trade truce. A total of 119 million trips were made domestically during the three-day holiday (May 31 to June 2), rising 5.7% from a year earlier. Travelers spent more than 42.7 billion RMB ($5.9 billion), up 5.9%, figures provided by the Ministry of Culture and Tourism today showed. That means spending per trip was 359 RMB, down 2.2% on the year, according to Bloomberg calculations based on the official numbers. The decline was even steeper when compared with per-trip spending of 457 RMB during the Tomb-Sweeping Festival in April, which also lasted for three days. Trade war fallout continues despite Geneva talks The data suggested Chinese households have remained vigilant against splurging amid job and income uncertainties, as the economy grapples with domestic woes such as a property slump, deflation and trade tensions with the U.S. Despite the pause on higher tariffs following last month’s bilateral talks in Geneva, the average rate of U.S. levies on Chinese goods is still elevated at roughly 40%, hitting smaller exporters hard and forcing them to shrink payrolls. China’s manufacturing sector had its worst slump since September 2022 in May, with new orders contracting and companies cutting staffing levels, according to results of a private survey published jointly by Caixin and S&P Global on Tuesday.

China holiday spending shrinks as consumer sentiment stays weak

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Published June 03, 2025

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China holiday spending shrinks as consumer sentiment stays weak