Economy

Urban dwellers reluctant to spend in 2006 -2010

(Xinhua)
Updated: 2011-03-08 10:14

BEIJING - China's urban dwellers were less willing to spend during the 2006-2010 period, despite sustained and rapid income growth, the National Bureau of Statistics (NBS) said on Monday.

The per capita disposable income of urban residents was 19,109 yuan ($2,911) in 2010, up 82.1 percent from 2005 or 59 percent in real terms after price factor adjustments, the NBS said in an online statement.

Further, the annual growth rate was 9.7 percent during the period after price factor adjustments, it said.

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However, the average propensity to consume, or APC, which measures the proportion of annual income spent on consumption of goods and services, fell 5.2 percentage points from 2005 to 70.5 percent in 2010, it said.

Meanwhile, the net urban savings rate was up 7.6 percentage points during the period to 11.1 percent in 2010, it added.

The income from wages for urban residents rose 75.8 percent in five years to 13,708 yuan in 2010, with the annual increase at 11.9 percent before price factor adjustments, it said.

The statement said that the growth was attributed to government measures, such as minimum wage standard increases and mechanisms for regular pay increases.

The statement also said that per capita property income more than doubled during the period to stand at 520 yuan in 2010, which was mainly contributed by increases in interest, dividends and rental incomes.

Also, it said that food consumption was stable in urban areas during this period. The Engel's Coefficient, which measures the amount of money spent on food compared to total income, was down one percentage point from 2005 to 35.7 percent in 2010.