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    Industry And Investment Are Traditional Drivers Of China's Economic Growth.

    2016/1/24 19:43:00 23

    IndustryInvestmentChina's Economy

    British media said that the global economic outlook is facing more bad news: Chinese consumers may cut spending this year, such as reducing dining out, postponing the replacement of smart phones, and stopping impulse shopping.

    According to Reuters reported on January 22nd, China's policymakers will be worried about this.

    The shock of China's stock market and stagnation of wage growth have left them struggling to cope. Analysts attributed their economic growth in 2015 to at least the government's goal in consumer spending.

    Tom Rafferty, an economist at EIU, wrote: "Chinese consumers came to the rescue in 2015.

    Their spending helps offset the weakness of industry and investment, and industry and investment are traditional drivers of China's economic growth. "

    The report says, but there is no guarantee that they will do so in 2016.

    A survey released by ANZ bank in January 20th showed that Chinese consumers in January

    confidence

    Slipping to record lows.

    China's Brown Book survey data from the US research institute show that employment growth and wage growth in the fourth quarter are at a four year low.

    Reuters said that interviews with shoppers coincided with those surveys.

    Those respondents said they would control spending and probably cut spending.

    A man surnamed Zhou said last year he spent 70 thousand yuan on dining out with his girlfriend, and the cost of clothing and accessories was 40 thousand yuan.

    The man said that in view of the economic situation, they planned to cut costs nearly 1/3 in 2016.

    "We will cook more at home.

    I might not be able to switch to mobile phones and other electronic products less frequently.

    A 30 year old woman with a cup of coffee and sheets at a store said, "I don't think my income is going to keep up with the rising prices.

    These are not necessities.

    I may have some control over myself.

    Try not to shop too often. "

    The report said that the impact may be more and more elderly in China.

    They believe that the cost of health is eroding their disposable income.

    A retired 55 year old woman who refused to be named said she had to spend a lot of money on air purifiers to deal with air pollution.

    "I'd rather save my money in case I should see a doctor when I'm sick."

    She said.

    Reported that many

    China

    Small retailers are also squeezed.

    They are consumers themselves, and their survival is totally dependent on domestic demand.

    Reported that Chinese consumers at home and abroad

    purchasing power

    This may weaken, because the recent depreciation of the renminbi will affect the prices of many imported products sold in the Chinese market.

    "We predict that the growth of consumer spending this year will slow down because the wage growth is slowing down, and the weakness in the industrial sector is still likely to spread more strongly in the consumer sector," Louis Kuijs, head of Asia's economic division in Hongkong, Oxford Economics, wrote.

    Reported that there are signs that the rebound in China's consumer sector is continuing.

    A survey of consumer confidence in Australia's New Zealand bank showed that more respondents thought it was a good opportunity to buy large items.

    According to the China Association of automobile manufacturers, sales of new cars in 2016 will increase by 6%, up from 4.7% last year.

    "Last year, the business situation was not good, and it couldn't get better."

    The owner of a clothing store in Shanghai said.

    "The rich will buy luxuries, and the poor will save."


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