Wednesday, February 23, 2011

China consumer confidence drops in Q4

BEIJING: China's consumer confidence index dropped in the fourth quarter, the second consecutive quarterly decline, as expectations for rising prices hurt sentiment, the National Bureau of Statistics said on Wednesday, according to Reuters. The index fell to 100 from 104 in the third quarter, a survey by the statistics agency and the Nielsen company showed.

Concerns about quickening inflation, especially surging property prices, and rising interest rates all weighed on consumer confidence, the survey said.

Of those consumers polled, 84 percent thought food prices would climb further over the next 12 months, up from 78 percent in the third quarter.

About 67 percent of those surveyed believed property prices were on the ascent, up from 62 percent in the previous quarter.

China's inflation is running close to two-year highs, and many analysts believe it could accelerate in coming months as global food prices soar. Food prices account for a third of China's consumer price index. - Reuters

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