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China's retailers and catering firms chalked up sales of 975 billion Yuan ($158.94 billion) during the week-long National Day holiday, according to the ministry.
The holiday, when millions of people take time out to travel and spend more than usual, also brings huge discounts and promotions as retailers battle for market share.
Analysts were closely watching consumption during the holiday, which ran from Oct 1-7, amid signs of a slowdown in the world's second-largest economy.