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China's bankcard consumer confidence rebounds

(Xinhua) Updated: 2014-02-14 13:25

BEIJING - Chinese consumer confidence rebounded month on month in January after dipping for three consecutive months, mainly driven up by holiday factors, according to an index released Friday.

The Bankcard Consumer Confidence Index (BCCI), compiled by Xinhua News Agency and China UnionPay, a national bank card association, edged up 0.45 points from December to 85.88 points last month.

The figure was 1.22 points lower from a year earlier. A lower reading in the index shows a decline in consumers' desire to spend.

A report released along with the index attributed the rebound mainly to holiday effects, as the Spring Festival, or China's Lunar New Year, fell on Jan 31, making consumers more willing to spend in restaurants, as well as on groceries and gifts.

The consumption of bankcard users in restaurants rose 7.96 percent from December, while consumption on cigarettes and wine surged 30.51 percent, the report said.

The report forecast that consumer confidence will likely be affected in the short term by a weaker momentum of economic growth.

Data from the National Bureau of Statistics showed China's purchasing managers' index (PMI) for the manufacturing sector dropped to a six-month low of 50.5 percent in January.

The BCCI index, first released in April 2009, is based on bank card transaction data and analyses of changes in urban consumption.

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