Consumers optimistic in Q2

The Chinese consumer confidence index for the second quarter hit its highest level since the same quarter last year despite continuous slowdown of the economy, a survey showed Tuesday.

Chinese consumer confidence indexed at 110 in the ­second quarter of 2013, two points higher than in the first quarter of the year, according to a quarterly survey released Tuesday by global information company Nielsen.

It was up four points from the same period in 2012 and the highest over the past four quarters, the survey showed.

"Despite the overall growth slowdown of the Chinese economy, Chinese consumers' perception about personal finance and spending intentions all show a steady growth from the first quarter," said Nielsen Greater China President Yan Xuan, noting that both of the factors mentioned had contri­buted to the overall increase.

Consumer confidence levels above a baseline of 100 indicate optimism, while levels below 100 indicate pessimism.

However, Chinese consu­mers' views about job prospects continued to decline in the second quarter, indicating a slowdown in labor demand in the manufacturing industry, the survey showed.

The index report came after official data showed last week that China's retail sales, a measure of consumer spending, grew 12.7 percent year-on-year in the first half, up 0.3 percen­tage points from the first quarter but declining 1.7 percentage points year-on-year.

"There are still a lot of factors that may restrain consumption growth in the coming months, including the downward pressure of the macroeconomy, a slower increase of residents' income and inflation pressure," Zhao Ping, a research director at the Consumption Economics Department under the Chinese Academy of International Trade and Economic Cooperation, told the Global Times Tuesday.

Official data also showed last week that consumption contributed 45.2 percent to GDP growth in the first half of the year, down from 60.4 percent in the first half of 2012, while the contribution of fixed-assets investment to GDP growth reached 53.9 percent, an increase from 51.2 percent in the first half of last year.

Consumption had become the primary engine for GDP growth in 2012, contributing 51.8 percent to GDP growth in the year against 50.4 percent of contribution by fixed-assets ­investment.

China has been gradually adjusting its growth model from reliance on exports and investment toward a consumer-­driven model. But the slowdown of the economy has put pressure on such initiatives.

Premier Li Keqiang said earlier this month the government will focus on restructuring and advancing reforms as long as key indicators don't exceed certain thresholds.