China’s consumer confidence weakens in Sept

17 january 2013

BEIJING — Chinese consumers, particularly those with bank cards, showed slightly less confidence in consumption in September due to an unfavorable economic situation and holiday factors, according to an index released Monday.

The Bankcard Consumer Confidence Index, compiled by the Xinhua News Agency and China UnionPay, a national bank card association, dropped 0.41 point from August and 0.54 point year-on-year to 85.8 points in September.

The report said consumer confidence was dampened by the unfavorable macroeconomic situation and the arrival of the Chinese traditional Mid-Autumn Festival in the month, which pushed up food consumption but reduced consumption of other non-essential items.

The official purchasing managers’ index improved to 49.8 percent in September from 49.2 percent in August, but was still below the 50-percent threshold that demarcates expansion from contraction, leading consumers to worry about a continuous slowdown.

The report said the country’s consumer confidence is likely to recover in the next few months as the economy stabilizes and the government intensifies its efforts to support domestic consumption.