Foreign tourists experience Chinese tea culture in Zhangkou village, South China's Guangxi Zhuang Autonomous Region, on April 17, 2026.

China's retail sales of services grew 5.6 percent year-on-year in the first four months of 2026. The sector is seeing a virtuous cycle between supply and demand that is strengthening the foundation for stable growth and adding momentum to economic expansion, a spokesperson of the Ministry of Commerce (MOFCOM) said on Thursday. Experts said that the trend reflects a broader structural upgrade in China's consumer market. 

At a regular press briefing on Thursday, MOFCOM spokesperson He Yadong said that domestic consumption of services has shown notable strength in areas such as tourism and leisure. In some regions, the overlap of the spring break with the Qingming Festival and May Day holiday boosted travel demand, while cultural performances, sports events and other innovations helped meet consumers' increasingly personalized expectations. 

According to the ministry, online services consumption also performed strongly. With the rapid development of online and digital consumption, online services retail sales exceeded 2.4 trillion yuan ($353 billion) in the January-April period, up 8.3 percent year-on-year, outpacing the growth of goods retail sales.

Analysts pointed to the strong performance of online services as evidence of the digital transformation in the sector. The rapid expansion of online services consumption suggests that digital platforms are reshaping how people consume services. This not only improves convenience for consumers but also expands market access for services providers, particularly in smaller cities and rural areas, they said. 

The expansion of services consumption reflects multiple factors, He Yadong said. On the demand side, Chinese people are shifting from a consumption pattern dominated by goods to one that gives equal weight to goods and services, with growing demand for higher-quality and more diversified services.

On the policy side, the ministry has worked with other departments to improve the "1+N" policy framework for services consumption. Combined with initiatives such as a national services consumption season and the Chinese Food Festival, these efforts are creating more integrated consumption scenarios and helping keep the market both vibrant and orderly, the MOFCOM spokesperson said.

Hu Qimu, a professor at the Maritime Silk Road Institute of Huaqiao University, told the Global Times on Thursday that the rapid growth in services consumption during the previous four months reflects both rising market demand and continued policy support. 

The growth in retail sales of services shows that consumption is becoming more diversified and experience-oriented, Hu said, adding that as incomes rise and consumer preferences evolve, services such as travel, entertainment, education and healthcare are likely to become increasingly important drivers of domestic demand.

Policy support has played a key role in unlocking demand. "The government's efforts to improve supply quality and create new consumption scenarios are helping convert potential demand into actual spending. The country has rolled out major initiatives to boost growth in the services sector, aiming to cultivate new consumption hotspots while fostering a virtuous cycle between supply and demand in China's services economy," Hu said, adding that this is especially important for stabilizing growth at a time when external uncertainties remain.

"Services consumption is an important lever for expanding and upgrading consumption," He Yadong said. "The ministry will work with relevant departments to expand high-quality services supply, promote the integration of services consumption formats, accelerate the cultivation of new growth drivers, and achieve a dynamic balance between consumption growth and people's well-being."

Global Times