Shanghai's consumer confidence surges in Q2
Shanghai's consumer confidence showed a significant growth in the second quarter of this year amid a steady economic recovery, according to a new survey.
The quarterly Index of Consumer Sentiment in Shanghai, compiled by the Shanghai University of Finance and Economics, jumped 10.5 points from the first quarter to 122.3 points, further extending the quarter-on-quarter increase, and was 17.9 points higher than a year earlier.
The university's Index of Investor Sentiment, meanwhile, fell by 14.96 points from the previous quarter and 9.55 points from the same period last year, reaching 98.45 points.
For both indices, a reading above 100 signifies optimism while one below 100 indicates pessimism.
As for sub-indices, the evaluation index, which measures consumers' assessment of the current economic situation, rose by 14.5 points from the previous quarter to 120.4 points, a sharp year-on-year increase of 19.4 points. The expectation index, which gauges consumers' expectations for the future economic situation, was up by 6.4 points quarter on quarter and by 16.4 points year on year, to hit a record high at 124.3 points.
This significant increase in the consumer confidence is mainly attributed to the city's stable economic development, which has led to a rise in consumer satisfaction and a positive outlook toward the economy. After gradually emerging from the pandemic, Shanghai's economy has shown strong resilience and positive growth momentum.
To maintain this positive trend, efforts should be made to enhance the competitiveness of emerging industries and high-tech fields, according to Xu Guoxiang, director of the university's Applied Statistics Research Center; and Professor Wu Chunjie and Associate Professor Cui Chang from the School of Statistics and Management.
This includes promoting new-energy technology research and development, achieving sustainable development, and building a framework for nurturing new technological talent. They also suggested focusing on high-quality development by implementing policies that promote innovation in science and technology, the formation of dynamic mechanisms, and the deepening of high-quality reform and opening-up.
The survey results also reveal that employment and income issues are important factors in maintaining consumer confidence. The evaluation and employment indices for the middle-income consumer group showed significant declines in this quarter's survey, Xu pointed out.
The trio recommended addressing these issues by providing diversified employment opportunities, stabilizing the employment market and income, and boosting consumer confidence, which will promote the circular development of the economy.
Consumers' purchase intentions were found rebounding strongly in the second quarter, with the indicator soaring 13.7 points from the previous quarter and rocketing 23.4 points from a year earlier, to be at a relatively high level of 113.1 points.
Among them, the indicator of home-buying intentions surged 15.4 points on the quarter and was 30.3 points higher than a year earlier. The intention to buy cars and durables, meanwhile, saw quarter-on-quarter increases of 9.8 points and 16 points, respectively.