Latest news with #consumption
Yahoo
17 hours ago
- Business
- Yahoo
China Social Spending Hits Highest Level in Nearly 2 Decades
(Bloomberg) -- China's government spending has pivoted toward social welfare to a degree unseen for at least a generation, as it runs a record budget deficit with a focus on boosting consumption to cushion the blow from Donald Trump's tariffs. Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus Can This Bridge Ease the Troubled US-Canadian Relationship? Trump Administration Sues NYC Over Sanctuary City Policy The latest evidence arrived on Monday, when China announced it will start offering nationwide cash handouts to families as an incentive for couples to have children. While Beijing is channeling less on-budget investment into infrastructure, expenditure that covers outlays ranging from education to employment and social security climbed to nearly 5.7 trillion yuan ($795 billion) in the first half — the highest for the period since the data series began in 2007. That represents an increase of 6.4% from a year earlier, according to Bloomberg calculations based on figures published by the Ministry of Finance. Authorities could renew their pledge to prioritize support for domestic demand, as top officials prepare to meet this month to set the economic agenda for the rest of the year while trade talks with Washington continue. The splurge was almost double the increase in total spending under the general public budget, the first and biggest account among the government's four fiscal books. Infrastructure-related expenditure in the account — allocated for costs such as environmental protection, irrigation facilities and transportation — was 4.5% less than a year earlier. Fiscal priorities have shifted after the trade war unleashed by Trump threatened China with millions of job losses and put pressure on its patchy social safety net. Under the new policy of childcare subsidies, the government will spend 3,600 yuan a year per kid under the age of three, according to the official Xinhua News Agency. Citigroup Inc. estimates a total lump-sum payout of 117 billion yuan in the second half of 2025, while Morgan Stanley puts the program's annual cost at 100 billion yuan, assuming about 9 million births a year. Although President Xi Jinping has in the past resisted large-scale handouts to families over what he's called 'welfarism,' China responded in recent months by ramping up government support for households. The goal is partly to bolster domestic demand in the face of US tariffs, which have sent the country's shipments to the world's biggest consumer market slumping this year. 'Better supporting people's well-being will help boost domestic demand and is part of the rebalancing of the Chinese economy,' said Tommy Xie, head of Asia macro research at Oversea-Chinese Banking Corp. At the same time, China launched construction of a 1.2 trillion yuan mega-dam in Tibet this month, a massive project that will likely take years to complete. 'The room for infrastructure expansion in the future will shrink marginally' even though it can play a 'supporting role at critical times,' OCBC's Xie said. Social security and employment saw the biggest gain in spending related to people's well-being, up almost 8% in the first half from a year earlier. A survey carried out by China's central bank showed an employment sentiment index hit a record low in the second quarter, illustrating the need for more government aid for job seekers. Outlays on education increased 5.9% and rose 4% on medical treatment and health care. Meanwhile local governments' tapping of the annual quota of new bonds meant mainly for infrastructure investment slowed. Provinces have issued about 56% of new special local bonds allowed for this year, down from an average of 61% for January-July in the five years through 2024, according to Bloomberg calculations based on MOF numbers. Previously, the favored way to jumpstart growth was by spending on areas like roads, railways or industrial parks, much of it done by provincial governments. Instead, the government has accelerated the issuance of sovereign notes this year, primarily to cover the budget shortfall for routine public expenditure. Chinese provinces also sold substantial volumes of bonds in the first seven months to refinance their so-called hidden debt, as Beijing seeks to contain credit risks from deteriorating local finances. What Bloomberg Economics Says... 'An uneven consumption recovery in the first half highlights a key risk for China's growth outlook: a sustained improvement in domestic demand may require time to take hold. The experience from 1998–2003 suggests that even with strong policy support, lasting gains in consumer spending can be slow to emerge — with false starts along the way.' — David Qu and Chang Shu. For full analysis, click here Government borrowing was crucial for replenishing state coffers depleted by China's years-long property slump. Revenue from real estate-related taxes, including deeds and urban land use, fell 5.6% on year in the first half to 975.3 billion yuan. Provinces earned 1.43 trillion yuan in the period from selling land, a contraction of 6.5% despite a rebound of over 20% in June thanks to market recovery in some big cities. Economists at Goldman Sachs Group Inc. cautioned, however, on 'the sustainability of land sales revenue improvement' and maintained their forecast that government land sales revenue may decline further this year by up to 10%. Total tax revenue shrank 1.2% on year in the first half to 9.29 trillion yuan, with income from levies on such transactions as vehicle purchases posting double-digit declines. Non-tax revenue — which includes compensation for the use of state-controlled resources and assets and fines — rose 3.7% to 2.27 trillion yuan. It grew despite a decline in the money collected from fines, a Finance Ministry official said at a Friday briefing. Revenue from the tax on vehicle purchases plunged 19.1% in January-June from a year ago, the biggest drop among all categories and more than triple its decline in the same period of 2024. Slumping income from the vehicle purchase tax shows the impact of the government's decision to extend the suspension of a levy on buying new energy vehicles, such as electric cars, to 2027, Huachuang Securities analysts including Zhang Yu wrote in a note on Friday. The shift away from fuel-powered cars also weighed on revenue from the consumption tax by reducing demand for gasoline and diesel, they said. The government is losing a total of 265 billion yuan per year in revenues from the vehicle purchase tax and the consumption levy due to the pivot to cars powered by alternative-energy sources, Huachuang Securities estimates. (Updates with detail on government bond issuance this year.) Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off Elon Musk's Empire Is Creaking Under the Strain of Elon Musk ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
20 hours ago
- Business
- Bloomberg
China's Social Spending Hits Highest Level in Nearly Two Decades
China's government spending has pivoted toward social welfare to a degree unseen for at least a generation, as it runs a record budget deficit with a focus on boosting consumption to cushion the blow from Donald Trump's tariffs. The latest evidence arrived on Monday, when China announced it will start offering nationwide cash handouts to families as an incentive for couples to have children. While Beijing is channeling less on-budget investment into infrastructure, expenditure that covers outlays ranging from education to employment and social security climbed to nearly 5.7 trillion yuan ($795 billion) in the first half — the highest for the period since the data series began in 2007.
Times
a day ago
- Lifestyle
- Times
How to make fruit, veg and other food last longer in your kitchen
Mindful about consumption and avoiding waste? There are so many little things we can do to make positive changes; I hope you find these suggestions helpful. I used to buy large packets of disposable sponges — the ones that had a yellow sponge and a scouring green side — without really thinking how bad they might be for the environment. What I didn't realise was that the sponges release microplastics every time they are used, they aren't recyclable and go straight to landfill, where they take up to 500 years (!) to degrade. I made a simple change to plant-based cellulose sponges (£2.20, They are much more durable than their plastic-based counterpart and last for months. You can compost them after you have finished using them. Many washing-up liquids contain chemicals that are harmful to the environment. If you have a local refill shop, use a glass bottle to restock the washing up liquid from an eco-friendly brand (such as Another option is to purchase a refillable foaming washing-up spray and powders (£12, or £18, Replace your plastic dish brushes with wooden alternatives that have Tampico natural bristles. You can find many brands that have replacement heads (£6, They should last for months. When I was a child, disposable kitchen towels were just an expense that my mum didn't buy into — as an adult I feel the same. We have a large basket of tea towels that we use as an alternative to oven mitts and dish towels, and for covering food and general cleaning or mopping up messes. If you are a fan of kitchen towels, you can buy rolls of machine-washable reusable towels, usually made of organic cotton, that you pop onto your kitchen towel handle (£28.70 for 12, • Read more expert advice on property, interiors and home improvement Disposable wipes are so wasteful. In our house we use cloths for cleaning and polishing, and I also use compostable Swedish dishcloths (£5.50 for four, a cross between a dishcloth and a sponge, made from plant-based cellulose and waste cotton. I have them in a number of colours and use a colour-coded system for the different jobs in our house. For on-the-go food storage, I tend to use stainless steel food containers (from £27.95, — they are durable, dishwasher-safe and resistant to scratches and rust. For food storage in the fridge, I have a collection of stackable glass containers with bamboo lids, which I love because I like to see the food inside (£6, I also reuse glass jars for smaller items. I have two favourite types for this purpose: a trusty jam jar and a large pickle jar. For the freezer, I favour silicone as a reusable alternative to standard freezer bags (£12.99 for two, I also freeze smaller amounts of food in glass jars, which requires a little preparation to avoid issues like jar breakage: • Make sure that any food that you freeze in jars is cool before freezing as rapid temperature changes can cause glass to crack.• Leave at least 3cm of headspace at the top of the jar to allow for expansion.• Do not fill past the shoulders of the jar and put on the lids loosely until fully frozen. Once the food is fully frozen, you can tighten the lid.• When you are ready to defrost the contents of a jar, defrost slowly, either in the fridge or at room temperature. I always wash and dry vegetables before storing them. Fill a sink with cold water, add 2–3 tablespoons of bicarbonate of soda and give the vegetables a bath for up to ten minutes. Using a natural vegetable brush, gently scrub the surfaces to remove stubborn dirt. Add your veggies to a colander and rinse thoroughly. Pat them dry with a soft towel and allow to air-dry; they can now be stored. Leafy greensLine a large container with a damp, cotton towel. Place the leaves on top and place in the fridge. Root vegetablesRemove the leafy tops and store in a container in the fridge. Potatoes and sweet potatoesStore in a cool, dark and well-ventilated place. Refrigerating can affect the structure and taste of potatoes. • 6 essential home appliances to buy: from washing machines to air fryers Onions and garlicStore in a cool, dark and well-ventilated place. Refrigerating isn't recommended as it can affect the texture and flavour. Keep onions separate from potatoes, as they can spoil each other quickly. Broccoli and cauliflowerKeep in the fridge and only wash just before eating as the water can cause spoilage. TomatoesStore at room temperature until they are ripe. If you find you have more than you can eat, keep them in the fridge to extend their freshness; just make sure you take them out and bring to room temperature before eating, to maximise their flavour. Peppers, cucumbers and courgettesBest stored in the fridge to prolong their life. I have a cotton 'salad bag' that I use to store them. MushroomsKeep in a paper bag in the fridge. I avoid washing mushrooms before I store them as this leads to them becoming slimy. It's best to brush or wipe them just before use. AsparagusYou can store your asparagus like a little bunch of flowers. Trim the ends and place them upright in a jar with 3cm of water at the bottom. Change the water every few days. BananasStore separately from every other fruit or vegetable. Bananas produce ethylene, which is a plant hormone that accelerates its ripening process and can also ripen the fruit and vegetables around them more quickly. BerriesFind a clean container, pop a small dry towel or reusable kitchen towel in the bottom and place your berries on top. The towel will absorb any extra moisture that otherwise would spoil them. Don't wash berries until they are ready to be used. This is an edited extract from My Plastic-Free Home: Simple Steps to Live More Sustainably by Kate Jones (HarperCollins £12.99), out July 31. Buy from or call 020 3176 2935. Discount for Times+ members. Jones runs The Natural Living Shop in Mawdesley, Lancashire, and is on Instagram @my_plastic_free_home
Reuters
2 days ago
- Business
- Reuters
China's net gold imports via Hong Kong in June fall 60% from May
July 28 (Reuters) - China's net gold imports via Hong Kong in June fell nearly 60% from May, Hong Kong Census and Statistics Department data showed on Monday. As the world's leading gold consumer, China's purchasing activities can influence global gold markets significantly. The Hong Kong data may not provide a complete picture of Chinese purchases because gold is also imported via Shanghai and Beijing. Net imports via Hong Kong to China for June stood at 19.37 metric tons, compared with net imports of 48.13 tons in May. China's total gold imports via Hong Kong reached 34.72 tons in June, down nearly 40% from May's 57.76 tons. China's gold consumption in the first half of 2025 fell 3.5% from the same period a year earlier to 505.2 metric tons, the state-backed gold association said last week. China's imports of gold extended declines for a second successive month in June, customs data showed on July 20.
Bloomberg
3 days ago
- Business
- Bloomberg
HK Financial Chief Sees Rebound in Second-Quarter Retail Sales
Hong Kong Financial Secretary Paul Chan said he expects a bounce-back in second-quarter private consumption, following more than 12 months of decline. Retail sales increased in May from a year earlier after 14 months of declines, Chan wrote in a blog post on Sunday, indicating early signs of market stabilization. He said he was 'cautiously optimistic' on the outlook for June data.
