Retail in Asia

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Chinese consumers tighten purse strings amid gloomy times

Many Chinese consumers have become more cautious about their spending as they feel the chill of the economic slowdown. Their response may cut the contribution of household spending to economic growth and see the country’s already high household savings rate rise further this year.

"Chinese consumers are holding on to their wallets a bit tighter than before," said Jeff Walters, a partner of Boston Consulting Group. "This is driven in large part by China’s waning [gross domestic product]. Recent rises in housing prices and uncertainty over the property market are also making people more hesitant about spending."

The consulting company conducted a survey of more than 1,000 Chinese consumers from top- to fourth-tier cities earlier this year and found that only 27 percent planned to increase their discretionary spending, compared with 38 percent a year ago. Nearly 6 in 10 respondents said they wanted to save more, while 29 percent expected to earn less in future. Both figures are higher than last year’s.

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(Source: scmp.com)