Chinese consumers are buying less, except for food, alcohol, and phones

Chinese retail sales grew by 1.7% in March, a slowdown from previous months. This growth was mainly driven by online sales and specific categories like food, beverages, and communication devices.

This data shows that Chinese consumers are still cautious about spending, especially on big-ticket items like cars and furniture. Instead, they are prioritizing essentials and smaller discretionary purchases. This shift means that businesses relying on broad consumer spending will face continued headwinds, while those in specific resilient sectors may see growth.