AI Data Insight
In Q1 2026, the real year-over-year growth rate of per capita consumption expenditure for urban residents in China fell to 2.0%, a significant pullback from the previous 3.7%. Although GDP grew by 5.0% during the same period, consumption growth lagged behind income growth, indicating that a defensive saving mentality remains prevalent. The sluggish housing market and a weakened wealth effect continue to suppress domestic demand, making the strength of future policy expansion a key point of observation.