Alibaba hype notwithstanding, the much forecast surge in household consumption and away from dependence on western exports and state ‘investment’ in the Chinese economy is not working out as bulls had promised.
“Judging by Alibaba’s blowout “Singles Day” sale this week, one could be forgiven for thinking all is well with the Chinese consumer. In fact, evidence is stacking up that shopping carts are increasingly bare.
The troubling implication is that China’s resilient spenders are succumbing to an economic downturn, which until recently has been largely confined to property and heavy industrial activity. Declining investment in these areas was bound to eventually feed through, as people working in those industries earn less. Falling home prices add to the sense of anxiety.”
Read some key stats on actual sales trends here: The Not-so-Mighty-Chinese-Consumer