Editor's note: This analysis is written by Yi Shaohua, director and research fellow from the Market Circulation and Consumption Research Office of the National Academy of Economic Strategy, CASS. The article reflects the author's opinions and not necessarily the views of CGTN.

This year, the Mid-Autumn Festival and National Day coincided, resulting in the longest "Golden Week" holiday in history, providing a prime opportunity for people to reconnect with family and friends and enjoy travel.

Amid the golden autumn season, with the cool autumn breeze, people wholeheartedly embraced their long-suppressed enthusiasm for consumption during this extended holiday. They got together with parents and friends, explored tourist destinations, engaged in trendy sports, and participated in cultural and entertainment events.

Consumption demands were seen across all aspects of life, with dining, lodging, transportation, shopping, and entertainment thriving. As a result, people felt they were caught in the hustle and bustle wherever they went.

According to statistics, on the first day of the holiday (September 29), the national railway system transported a record-breaking 20.098 million passenger trips, passing the 20 million passenger trip mark for the first time. This also marked a historic high in the daily amount of departure passengers. The national road network saw 66.71 million vehicle trips and was more congested than previous years. Data from Meituan revealed that, as of September 20, online restaurant reservations for the "Double Holiday" period surged by 112 percent compared to the same period in 2019.

These impressive numbers demonstrate the robust consumer demand and capacity of Chinese residents, signalling a swift recovery of consumer confidence and showcasing the resilience and enormous market potential of the Chinese economy.

Consumption, as the primary engine of economic development, serves as both a barometer reflecting economic recovery and a bedrock for evaluating economic growth trends and prospects. The exceptionally lively consumption market during the Mid-Autumn and National Day holidays reflects the gradual release of immense consumer demand.

In the first three days of the holiday, domestic tourism recorded 395 million domestic tourist trips, a year-on-year increase of 75.8 percent, generating domestic tourism revenue of 342.24 billion yuan ($47.57 billion), marking a 125.3 percent year-on-year rise. National demonstration pedestrian streets witnessed an 87 percent year-on-year growth in foot traffic. Key business districts in 36 large and medium-sized cities experienced a 132.1 percent increase in foot traffic year-on-year. Meanwhile, sales of duty-free goods in Hainan’s offshore duty-free shops exceeded sales expectations.

Concurrently, consumption has shown new trends, providing substantial support for high-quality economic development. For example, many regions have established diverse cultural, commercial, and tourism activities as well as immersive scenes in featured neighborhoods, combining tourism with urban recreation and commercial experiences. This has expanded consumption space, improved consumption functionality and enriched the consumer experience.

Tourism consumption has shifted from conformity to individuality and personalization, with data from Ctrip indicating that third and fourth-tier cities have become the "dark horses". During the "Double Holiday" period, booking volume for tourism products in cities such as Zibo, Yanbian, Fangchenggang, Jiuquan, Nanyang, Guangyuan, Chengde, Yichun, Qufu, and Ulanqab grew more than tenfold compared to the previous year. These statistics highlight a clear trend toward diversified consumer demands among residents. Residents have placed a higher emphasis on value for money and personal experiences, calling for combining tourism consumption with everyday consumption and accessing premium consumption services and experiences.

At the same time, Chinese consumers are transitioning to rational consumption. The consumer market is maturing, and consumer demands are becoming more rational. On the supply side, there are more diverse choices available in product design, functionality matching, and facility improvements, creating conditions for better meeting consumer needs.

As the Mid-Autumn and National Day holidays come to a close, the large-scale interregional population movement will temporarily subside. The consumption potential unleashed during this period is the epitome of China's steady economic recovery. Behind the outburst of consumption enthusiasm of Chinese residents lies the anticipation of a continually improving Chinese economy and the pursuit of a better life.

It can be asserted that the thriving Golden Week of 2023 National Day reinforces confidence in China's stable and promising economic development, serving as the clearest signal of China's steady economic recovery.