Consumer Confidence Stabilizes due to Income Growth
The confidence of Chinese consumers is slowly stabilizing this third quarter because of lower inflation and a double digit disposable income growth found in urban and rural regions. The quarterly consumer confidence index have risen one point to 106 in the third quarter which is 14 points ahead of the global average. Although the index dropped to 105 in the second quarter from 110 in the first quarter of the year.
The less concern on inflation in the last quarter helped drove up the confidence of first tier city consumers which posted a ten point gain in willingness to spend for the incoming year. in September CPI rose to 1.9 percent easing from the 2 percent in August which many economist are saying that it will remain below 3 percent by year’s end. Experts are also saying that consumer confidence is getting stable and its willingness to spend is also increasing as consumers are getting more positive about the future. Also domestic consumption has played an important role in fueling GDP Growth.
The fast growth of middle class families and urbanization process, more people are willing to spend money and this will further push the economy to achieve a soft landing.