BEIJING — Chinese consumers showed stronger willingness to spend in 2017 thanks to steady economic expansion, a survey showed on Feb 6.
China’s Consumer Confidence Index (CCI) reached 112 points in 2017, up from 106 points in 2016, with job prospects, personal finance and willingness to spend reaching a two-year high, according to the latest quarterly survey from global market research firm Nielsen.
The CCI continued its strong run in the fourth quarter of last year, reaching a record high of 114 points.
Nielsen’s CCI 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.
“Led by the new development concept, China’s economy has been shifting from a growth model driven by large volume to a model fueled by quality and efficiency. It has entered a new stage of ‘steady growth with improved quality,’” said Vishal Bali, managing director of Nielsen China.
Economic expansion exceeded the government’s full-year target in 2017, as growth accelerated for the first time in six years.
“For the past four years, China’s domestic consumption has become a leading force driving economic growth thanks to government efforts to restructure the economy,” Bali said.
As economy stabilizes, China’s CCI will remain in steady growth for the foreseeable future, he said.
Consumer confidence posted strong momentum in non-first-tier cities, with the fastest growth in rural areas, while the eastern and southern parts of China registered strong CCI expansion, according to the survey.
The holiday effect of shopping festivals like Singles’ Day, and Chinese New Year in February, further shores up consumer demand and catalyzes the consumer market, according to Bali.