BGC: Chinese Consumers Remain Cautious About Spending

Foreks - The Boston Consulting Group stated that Chinese consumers continue to be cautious in their spending as the government's recent stimulus measures have not yet resulted in a significant increase in their shaken confidence.

In a report from a study initiated by BCG in mid-October, which covered multi-layered cities and over 30 consumption categories, it was noted that any improvement in confidence would be significantly affected by economic and geopolitical concerns.

BCG wrote, "Consumer confidence remains neutral to slightly negative," adding that the stimulus package has still not meaningfully improved consumers' incomes. The report highlighted that consumers who once spent on luxury bags and travel are now increasing their savings as a way to cope with future uncertainties, which could hinder long-term recovery in consumption. BCG also indicated a 27% decrease in the proportion of those seeing an increase in income, negatively impacting consumers' income expectations for the next six months.