Business / Economy

Consumer confidence highest since 2005

By Hu Yuanyuan ( Updated: 2012-05-17 14:04

China's consumer confidence in the first quarter rose to its highest level since 2005 because of falling inflationary pressure and the government's determination to deflate property bubbles, analysts Nielsen said in a report on Thursday.

According to Nielsen, the Chinese consumer quarterly confidence index increased by two percentage points in the first quarter, making China the fourth most optimistic country in the world out of 56 markets measured.

"The government's firm support for small and medium-sized enterprises through expansion of credit, a policy shift to boost domestic consumption and demand and continued enforcement of restrictions designed to deflate the real estate bubble are all contributing to Chinese consumer optimism," said Yan Xuan, president of Nielsen Greater China.

In April, China's consumer price index, a main gauge of inflation, eased to 3.4 percent year-on-year from 3.6 percent in March, according to the National Bureau of Statistics.

Inflationary pressure may ease in the first three quarters, while rebounding slightly in the last quarter of this year, the report from the bureau said.

"As China's inflationary pressure is easing amid a stabilizing economy, Chinese consumers felt more optimistic about the economy, job prospects and personal finances," said Yan.


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