Lunar New Year Holidays Boosts Spending by 13 Percent

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Feb. 1 – China’s Ministry of Commerce announced retail sales increased by 13.8 percent to RMB290 billion during the Lunar New Year holidays despite the slowing economy, compared to the same period last year.

The figure may point to a stable Chinese consumer sector that posted a 19 percent increase in retail sales last December.

Nationwide food sales during the holidays rose by 23 percent while beverage sales increased by 17.5 percent and tobacco sales and alcohol gained 14.7 percent.

Sales of household electric appliances, aided by a government programme to subsidize purchases in rural areas, gained 17.8 percent.

Last quarter, GDP growth slowed by 6.8 percent and the economy grew by a seven-year low of 9 percent.

The increased spending during this year’s Lunar New Year celebrations may also be attributed to 2008’s snowstorms that disrupted travel and left many stranded or unable to go home.