(Yicai Global) Aug. 4 -- Shanghai, Beijing, Chongqing led the country in terms of spending power in the first half despite an overall drop in consumption due to the fallout from the novel coronavirus pandemic, The Time Weekly reported today.

Total retail sales of consumer goods in Shanghai from January to June were down 11.2 percent year on year to CNY694.7 billion (USD99.5 billion). It was the only city with consumption above CNY600 billion. It was also able to reverse the contraction trend and achieve growth in May and June.

Beijing suffered the biggest drop in consumer spending among the country’s four first-tier cities with retail sales falling 16.3 percent to CNY597.3 billion in the first half. The capital city was affected by a new cluster of Covid-19 in June which hampered recovery.

Chongqing, a major metropolis in southwestern Sichuan province, rose to third place for the first time, ousting Guangzhou. Consumer spending dropped by a relatively moderate 7.2 percent to CNY530.7 billion. As an inland area it is less reliant on international trade and therefore not as badly affected by the Covid-19 pandemic.

Chongqing has been quick to get its retail, catering and culture-oriented travel sectors up and running again while taking the appropriate epidemic control measures, said Liu Xiangdong, deputy director of Department of Economic Research at China Center for International Economic Exchanges. Its well-developed night economy has also driven consumption, he added.

Retail sales of consumer goods in Guangzhou were down 10.4 percent. Consumer spending will recover quickly once the pandemic restrictions are lifted, Liu said. Disposable income among its residents in urban areas was CNY35,156 (USD5,036) and CNY16,073 in rural areas during the first six months of the year, both higher than in Chongqing.

Chengdu ranked fifth with CNY369.2 billion and Shenzhen sixth with CNY364.0 billion, down 14.8 percent from a year earlier.

The virus has triggered a shift in consumer spending habits with much greater online demand. E-retail sales in Shanghai were up 5 percent in the first half to CNY122.7 billion accounting for 17.7 percent of the city’s total retail sales of consumer goods.

Editor: Kim Taylor