BEIJING — Goldman Sachs lowered its forecast for China's second-quarter real GDP growth to 4.5% from a previous estimate of 4.7%. The adjustment followed data showing retail sales in China fell 0.6% in May from a year ago, marking the first year-over-year decline since 2022.

Total online sales during the annual "618" shopping event, which ran from May 13 to June 18, grew by 4% compared to the previous year, according to Syntun. The research firm estimated total "618" online sales at 934 billion yuan ($137.86 billion), a figure that included same-day "instant" delivery and group purchases. Sales among major e-commerce platforms collectively grew by 0.9% during the shopping period. Alibaba's Tmall ranked first in "618" sales, followed by JD.com and ByteDance's Douyin.

Goldman Sachs analyst Hui Shan wrote in a note, "The divergence between high-tech/AI and property/consumption continues to widen in both industrial production and capital market data." Shan added, "Top leaders' domestic travel, recent policy communications, and our on-the-ground channel checks all suggest these trends will persist." The firm maintained its full-year outlook for China's real GDP growth at 4.7%.

Secondhand electronics platform ATRenew reported that sales of preowned products increased by nearly 80% during the "618" shopping period compared to the previous year. Demand for home cleaning services also increased during this year's event. Jacob Cooke, co-founder and CEO of WPIC, observed a surge in demand for artificial intelligence-related hardware during the shopping period and noted the growing use of AI tools by online shopping platforms. "Fashion did well, lifestyle, beauty, and health supplements are also doing really, really well," Cooke said. He added, "So people are taking good care of themselves, they're looking good, and they want to go out and experience the world."

Shan also stated that "AI-related job displacement could amplify macroeconomic headwinds and delay, if not derail, the recovery in the property market and household consumption." The 4% growth in online sales during this year's "618" festival contrasts with a 15.2% growth rate during the same period last year.