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China's Consumer Confidence Index reaches new high

By Chen Meiling | chinadaily.com.cn | Updated: 2017-08-11 15:39
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China's Consumer Confidence Index reached 112 points from April to June, the highest score since the fourth quarter in 2013, a report said Thursday.

Chinese consumer confidence maintained a steady increase, as the country's economy continues to fare well, said a study by Nielsen.

Vishal Bali, managing director of Nielsen China, said China's CCI in Q2 suggested the continuous upward trend of the country's overall economy.

China's GDP growth stood at 6.9 percent in the second quarter of 2017, up 0.1 percentage point than market expectations, according to the National Bureau of Statistics.

"As the national economy gains a steady momentum, Chinese consumers are becoming more willing to spend, with nationwide buying spree driving upgrade," said Bali.

The rising CCI was also due to consumers' optimistic perceptions of local job prospects, personal finances and immediate spending intentions, the report said.

Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism to the three factors above, respectively.

The personal finance state of consumers from the third and fourth-tier cities, especially those living in rural areas, has improved significantly. For example, the figure in the fourth-tier city rose by 3 points from the last quarter to 71.

The reason, said Bali, lies in the on-going supply-side reform and local economic policies aimed at boosting the less-developed regions.

"Fast-pace economic growth offers more job opportunities to local residents, the development of China's rural area and lower-tier cities will become a new driver for the country's future economic growth," said Bali.

"Households' steady growth in income will translate into a potential demand for purchase and investment," he added.

In the first six months of 2017, Chinese per capita disposable income rose to 12,932 yuan ($1,938.7), up 7.3 percent from last year, according to data of the National Bureau of Statistics.

Groceries ranked top in Chinese consumers' increasing spending, the study of Nielsen showed.

Consumers in higher-tier cities tend to spend more on better food and beverages, while those from lower-tier cities are willing to spend more on better daily necessities, it said.

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