China's consumer sentiment is on the rise

Chinese consumer sentiment has shown signs of recovery, as indicated by surveys and official data.

Chinese consumers now feel more positive about the economy compared to last year, Bloomberg cited a Deutsche Bank report as saying, with 54 percent of respondents polled this quarter saying they feel financially better off.

Earlier this year, a survey by American consulting firm AlixPartners reported that many Chinese consumers are increasingly prioritizing expenditure on products and services that enhance well-being over traditional spending. The survey found that consumers are most likely to spend more on health products, groceries, clothing and travel or holidays, and focus on wellness, experiences and value.

Further, HSBC's upgraded GDP growth forecast to 4.8 percent for China in 2025, as reported by Reuters on Tuesday, reflects expectations that stronger consumer spending will contribute significantly to economic expansion in 2025. 

"On top of the service consumption recovery, we also expect the goods consumption recovery to pick up," said HSBC Chief China Economist Jing Liu.

The Chinese government has taken active steps to spur domestic consumption. In an official announcement on Sunday, the country unveiled a series of measures aimed at stimulating domestic consumption, with initiatives to promote increased wages and provide targeted support for emerging sectors.

Further reinforcing the positive outlook, data from the National Bureau of Statistics released on Monday showed that retail sales grew by 4.0 percent year on year during January and February 2025, up from December's 3.7-percent growth.