Confidence of consumers is expected to stay positive this year

China's Consumer Confidence Index, or CCI, will likely remain in positive territory in 2018, given the strong economic growth momentum and people's expectations of better employment and higher income, according to Nielsen China.

Nielsen's CCI measures perceptions of local job prospects, personal finance and immediate spending intentions.

Consumer confidence levels above or below a baseline of 100 indicate degrees of optimism or pessimism, respectively.

In a report, Nielsen said the CCI rose sharply in 2017, ranging between 110 and 114 points, a relatively high level, indicating Chinese consumers' strong confidence, optimism and positive attitude.

For the whole of 2017, the CCI reached 112 points, compared with 106 in 2016.

"Thanks to supply-side structural reforms, the innovation-driven development strategy has been deeply implemented. The country is continuously injecting new vitality into the healthy and sustainable development of the economy," says Vishal Bali, managing director of Nielsen China. China's GDP grew by 6.9 percent in 2017 to 82.7 trillion yuan ($13 trillion; 10.7 trillion euros; ￡9.5 trillion), exceeding the official growth target of 6.5 percent. It was the first time in seven years that the annual figure rose, on the back of supply-side reforms.

"As the economic growth stabilizes, China's CCI will remain on a steady growth path in the foreseeable future," Bali says.

Job prospects, personal finance and the willingness to spend maintained stable growth in the fourth quarter of 2017, reaching the highest since 2015, Nielsen data showed.

Liang Hong, chief economist of investment bank China International Capital Corp, said in a research note that the country's GDP growth is likely to reach 6.9 percent this year.

Bali says: "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. Online shopping festival 'Double Eleven' (Nov 11, or 11-11) and the Chinese New Year holiday in February further shore up consumer buying desire."

Regionally, the Consumer Confidence Index in eastern and southern China registered strong growth, while that in the north was steady.

"The country's new pattern of regional economic development was boosted, as effects of strategies like the Belt and Road Initiative, the Yangtze River Economic Belt and the Beijing-Tianjin-Hebei Coordinated Development unfolded," says Bali. "Regional reforms, including the development of the western region, the revitalization of old industrial bases in the northeast and the rise of the central region, also contributed to the new economic pattern."

Amid technological upgrades and quality-oriented economic expansion, rapid growth can be seen across fields like urban development and retail, he says.

According to Nielsen, 96 percent of Chinese consumers surveyed said they were more willing to pay via mobile phones.

In addition, the concept of "new retail", or a symbiotic mix of offline and online retail, has quickly been accepted in China.

And 45 percent of manufacturers hold the view that new retail will have a profoundly positive impact on overall retail business, while 48 percent think it will hurt the retail industry to a certain extent, Nielsen said.

Fan Hang contributed to this story.

huyuanyuan@chinadaily.com.cn