Con­sumer con­fi­dence re­mains strong in Q2: sur­vey

Global Times US Edition - - BIZUPDATE - By Chu Daye Page Ed­i­tor: [email protected]­al­

Chi­nese con­sumer con­fi­dence re­mains strong, de­spite ris­ing down­ward eco­nomic pres­sure and grow­ing ex­ter­nal un­cer­tain­ties, as a quar­terly sur­vey by global mea­sure­ment and data an­a­lyt­ics com­pany Nielsen in­di­cates un­changed con­sumer con­fi­dence.

The China Con­sump­tion Trend In­dex (CTI) re­mained at a high level of 115 points in the sec­ond quar­ter, un­changed from the first quar­ter, even as GDP growth for the sec­ond quar­ter slowed to 6.2 per­cent from the first quar­ter’s 6.4 per­cent.

Nielsen’s CTI in­dex mea­sures re­spon­dents’ per­cep­tions of job prospects, per­sonal fi­nance and will­ing­ness to make pur­chases.

The base­line is 100, with read­ings above that level in­di­cat­ing op­ti­mism and those be­low in­di­cat­ing pes­simism.

All three com­po­nents of the CTI stayed in a sta­ble range in the sec­ond quar­ter, with job prospects down two points to 77 points and will­ing­ness to spend re­main­ing flat at 61 points, com­pared with the first quar­ter.

No­tably, the per­sonal fi­nance in­dex climbed one point from 70 points from the first quar­ter, in part boosted by the gov­ern­ment’s ef­forts to im­ple­ment fur­ther cuts in taxes and fees, both for the cor­po­rate and house­hold sec­tors.

Pos­i­tive trends in con­sump­tion were shored up by three short hol­i­days in the sec­ond quar­ter, which con­trib­uted much to over­all con­sump­tion, ac­cord­ing to the sur­vey.

A trend in­creas­ingly ev­i­dent in the quar­ter was that na­tional pride drove con­sumers to­ward do­mes­tic brands, with Nielsen data show­ing that 34 per­cent of con­sumers were more will­ing to sup­port and buy lo­cal brands.

“Po­ten­tial ris­ing in­fla­tion lev­els could play into the hands of lo­cal brands as con­sumers put­ting more em­pha­sis on value of the prod­ucts fore­most,” Justin Sar­gent, president of Nielsen China, told the Global Times on Tues­day.

Con­sumer hol­i­days and new forms of busi­ness also helped.

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