China’s Singles Day shopping festival underscores broader spending trends

With China’s annual Singles Day shopping festival taking place around November 11, analysts have been watching for several weeks to see whether the promotional event reveals anything more about how consumers feel about the direction of the country’s economy.

So far, the festival, which began earlier than usual on October 14, has seen modest growth, with marketing analysts predicting a 15% increase in sales this year compared to 2023.

Analysts told CNBC that the event appears to be “much quieter” this year as consumers opt for practical purchases rather than returning to a pre-pandemic spending frenzy. Much of the sales growth appears to be limited to experiential brands, electronic devices and niche purchases such as toys and collectibles.

The overall sentiment appears to reflect the broader economic picture: New data released on Saturday showed that the consumer price index, a key indicator of inflation, barely rose in October, falling from September’s 0.4% rise, according to the country This can be attributed to falling food prices, with production prices also showing a deflationary trend.