Shanghai consumers upbeat, investors retreat

SHANGHAI’S consumer confidence rose moderately in the second quarter but its investor confidence, although still optimistic, retreated, a survey showed yesterday.

The Index of Consumer Confidence in Shanghai, a quarterly gauge compiled by Shanghai University of Finance and Economics, gained 2.4 points from the first three months to 120.5 points in the April-June quarter, up 2.9 points from the level in the same period last year.

A reading above 100 points indicates optimism.

Consumer confidence in Shanghai’s economy was attributed to its steady economic growth as well as the optimistic outlook for transformation and upgrading, according to Xu Guoxiang, director of the university’s Applied Statistics Research Center, and deputy directors Cui Chang and Wu Chunjie.

Despite the trade tension between China and the US, the index’s rise indicated consumer confidence in the Chinese economy and a recognition of the “enhanced comprehensive strength and crisis resilience of the country,” Xu said.

The component index measuring intention by residents to buy homes rose 5.7 points from the previous quarter to 64 points and also increased sharply by 7.4 points from the same period last year to hit a new high since the fourth quarter of 2016. The index of consumer intention to buy cars added 5.1 points from the January-March quarter, but it fell 2.5 points from the same period a year earlier.

However, investor confidence fell 5.59 points from the first three months to 106.86 in the second quarter, up 3.22 points from the same period last year. But investors still remained optimistic although the recent trade disputes and an uncertain A-share market clouded their confidence.