Consumer spending in China has now grown on a year-on-year basis for three straight months.  Prior to these last three months, spending had contracted on a year-on-year basis for three straight months.  China’s large coronavirus surge this year ended in May, and May not surprisingly, marked the final month this year to see consumer spending contract on a year-on-year basis.

China’s consumer spending has very much been linked to new coronavirus cases and restrictions.  Of note too, though, is that China (like virtually every other nation) continues to experience significant inflation.  Higher prices have also been a factor behind Chinese consumer spending recently showing growth.