People visit the 4th China-CEEC Expo & International Consumer Goods Fair in Ningbo, east China's Zhejiang Province, May 22, 2025. (Xinhua/Jiang Han)

China's consumer spending in May posted its strongest growth in nearly one and a half years, as the country's supportive policies helped boost consumption and economic activity.

The retail sales of consumer goods, a major indicator of China's consumption strength, grew 6.4 percent year on year in May, accelerating from a rise of 5.1 percent registered in April and marking the fastest growth since December 2023, according to the National Bureau of Statistics (NBS).

From January to May, the retail sales of consumer goods rose 5 percent year on year, also accelerating from the 4.7 percent growth in the first four months, according to the NBS.

Factors supporting consumption growth in May included the government's consumer goods trade-in program, the "618" shopping festival that began in May this year, and the expansion of the country's visa-free entry policy, NBS spokesperson Fu Linghui told a press conference on Monday.

The combined retail sales of consumer goods related to trade-ins grew rapidly. In breakdown, sales of household appliances, audio-visual equipment, communication devices, cultural and office supplies and furniture surged by as much as 53 percent year on year in May, contributing 1.9 percentage points to the overall increase in total retail sales of consumer goods, Fu noted.

The country's online retail sales maintained solid growth, with that of physical goods expanding 6.3 percent year on year during the first five months, accounting for 24.5 percent of the total retail sales.

Fu said that China's economy has maintained steady momentum, with the consumption market showing increased vitality as the benefits of the consumer goods trade-in program continue to take effect.

China's economy grew by 5.4 percent year on year in the first quarter of 2025, up from the 5 percent full-year growth rate recorded in 2024. Economic data for the second quarter and the first half of the year is scheduled to be released on July 15.

Monday's data also showed that China's industrial production and fixed-asset investment maintained steady growth from January to May, while the pace of home price declines in major cities continued to ease in May.

Looking ahead, Fu said he expects new drivers of growth to emerge in China's consumption sector, but emphasized that further efforts are needed to strengthen consumers' purchasing power and confidence.