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China Daily Website

Q3 consumer confidence levels at 3-year high: Nielsen

Updated: 2013-11-20 11:08
By Hu Yuanyuan ( China Daily)

People's willingness to spend in the third quarter reached its highest level in three years, driven mainly by consumers in China's smaller cities, Nielsen reported Tuesday.

The consumer confidence index in China stabilized at 110 in the third quarter, a rise of four points over the same period last year, according to findings from Nielsen, a leading global provider of information and insights into what people watch and buy.

Also in the third quarter, the country's GDP growth rate rebounded to 7.8 percent from 7.5 percent in the previous quarter, reflecting rosier perceptions of personal finance and jobs.

Moreover, consumers' spending intentions rose another two percentage points to 43 percent, the highest since the second quarter of 2010, Nielsen said.

"The increase in Chinese consumers' willingness to spend was mostly seen in lower-tier cities and rural areas, which was in line with government efforts to lift household incomes, provide affordable housing and healthcare, and grant access to compulsory education in these city tiers," said Patrick Dodd, managing director of Nielsen China.

They also create a good foundation with which China can transform its economic growth pattern from investment-driven to consumption-driven, he added.

"With urbanization being one of the strategic objectives of China's economic rebalancing, we are confident the momentum will continue," Dodd said.

Fourth-tier cities showed a growing momentum in the third quarter, with a two-point rise to 109, which was up seven points from the first quarter, the report said.

Respondents from fourth-tier cities reported increased optimism for personal finance from 66 to 68 percent. Purchase intention was up three percentage points, to 48, following a big jump of seven percentage points between the first and second quarters.

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