Chinese consumer confidence rises

12 August 2009

BEIJING: Consumer confidence levels in China are rising, and an increasing number of shoppers in the country are also displaying a willingness to boost their spending levels, research from The Nielsen Company has found.

According to Nielsen's figures, confidence levels in the world's most populous nation rose by six points in the second quarter compared with the period from January to March, to 94.4 points overall.

Eastern and northern regions displayed the highest levels of optimism, and the residents of second- and third-tier cities were more positive than their counterparts in Shanghai and Beijing.

A majority of participants also regarded their employment prospects for the next 12 months as being either "good" or "excellent", up from 22% in Q1 this year.

Furthermore, a similar number described their personal financial prospects for the coming year in the same way, while 40% demonstrated a "strong willingness to spend", Nielsen reported.

This trend was said to have been encouraged, in particular, by initiatives implemented by the Chinese government to drive domestic consumption.

While 42% of people were saving spare funds for their children's education, members of the panel in bigger cities showed a greater desire to invest in the stock market or go on holiday.

Mitch Barns, Greater China president, The Nielsen Company, said "Chinese consumer confidence appears to have been boosted successfully through the government's economic stimulus initiatives."

"Additionally, many consumers in smaller cities appear to have been less affected by the downturn in the first place, so recovery is less of an issue for them."

Data sourced from The Nielsen Company; additional content by WARC staff