Con­sumer con­fi­dence con­tin­ues to rise in Q1

China Daily European Weekly - - BUSINESS -

As econ­omy con­tin­ues to de­velop, op­ti­mism over prospects grows

was 6.9 per­cent in the first quar­ter, higher than most economists’ ex­pec­ta­tions and 0.1 per­cent­age point higher than in the last quar­ter of 2016.

China’s con­sump­tion up­grade trend has fu­eled peo­ple’s spend­ing in­ten­tions, says Vishal Bali, man­ag­ing direc­tor of Nielsen China.

“As the over­all econ­omy is shift­ing to­ward a con­sump­tion-led model, we’re see­ing that peo­ple are in­creas­ingly con­fi­dent about their em­ploy­ment op­por­tu­ni­ties and personal fi­nan­cial sit­u­a­tion. And we are see­ing this trans­late into de­mand for pre­mium prod­ucts and ser­vices. Brands should be look­ing to cap­i­tal­ize on this,” Bali adds.

Nielsen’s China con­sumer con­fi­dence in­dex mea­sures per­cep­tions of lo­cal job prospects, personal fi­nance and im­me­di­ate spend­ing in­ten­tions. Con­sumer con­fi­dence lev­els above and be­low a base­line of 100 indi­cate de­grees of op­ti­mism and pes­simism, re­spec­tively.

The lat­est re­port shows that personal fi­nance grew to 66 from 62, and per­cep­tions of lo­cal job prospects to 55 from 53. More­over, the score of im­me­di­ate spend­ing in­ten­tions reached 55 from the pre­vi­ous level of 53, reach­ing its high­est level since 2014.

Mean­while, fast-mov­ing con­sumer goods, a key com­po­nent of the con­sump­tion sec­tor, also reached a new high in the first quar­ter, with the to­tal on­line sales value of 34 fast­mov­ing con­sumer goods cat­e­gories in­creas­ing from 28 per­cent in the fourth quar­ter of last year to 31 per­cent, and off­line sales value in­creas­ing from 2 per­cent to 4 per­cent, ac­cord­ing to Nielsen’s find­ings.

Zhang Jin­dong, chair­man of Sun­ing Hold­ings Group, said ear­lier that this year will be a land­mark for the con­sump­tion up­grad­ing, and the com­pany is par­tic­u­larly optimistic about this year’s prospects.

The con­sump­tion sec­tor ac­counted for 64.6 per­cent of China’s GDP growth last year, be­com­ing the big­gest driver of eco­nomic growth.

XINHUA

A tourist buys bronze­ware made in Pak­istan at a Grand Bazaar in Urumqi, cap­i­tal of Xin­jiang Uygur au­ton­o­mous re­gion.

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