China changing to a consumer economy, and other news

SCMP:

China’s consumer confidence index last month hit a new high since 2000 of about 115 after a rally of 16 months, suggesting China’s consumption is on track to remain high, according to Bloomberg. In fact, according to the National Bureau of Statistics, the total retail sales of consumer goods in August reached 3.03 trillion yuan (US$460.3 billion), up 10.1 per cent from the previous month.

The accumulated growth rate from January to August has also kept its pace at 10.4%, a record high unchanged for three consecutive months, according to the bureau. In contrast, the accumulated growth of fixed-asset investment from January to August was only 7.8%, 0.5% lower than that from January to July, and a new low since January 2002.

In July, Yan Pengcheng, director of Policy Research Office at the National Development and Reform Commission, said consumption has become an increasingly important driver of economic growth under the national policy of consumption expansion.

“The contribution of consumption expenditure to overall economic growth has risen consecutively for the last three years from 49% to 64%, all higher than that of investment expenditure,” Yan said. “[Consumption expenditure] in the first half of the year stood at 63%, 31% higher than that of investment expenditure.”

The contribution of consumption expenditure to overall economic growth in the second half of the year will stand at about 65%, according to a report by Aijian Securities in Shanghai released last month.

In other fun news, the wealth of the top 2100 Chinese is about the same number as the GDP of the UK. Meanwhile, Wretchard ruminates on the civil war. Finally, the NFL, which only pretends to prefer diversity to performance, has seen its approval go from 70% to 40%. Keep it up, guys!

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