Consumer confidence among residents of Shanghai slumped in the second quarter of this year, though they still remained generally optimistic.



The Shanghai Consumer Confidence Index fell to 104.4 in the three months ended June 30, down 12.7 points on the first quarter and 17.4 points from the same period of 2021, according to survey data released today by the social survey and applied statistics centers of Shanghai University of Finance and Economics. A level above 100 indicates optimism.



The city’s Covid-19 outbreak and the international situation were to blame, said SUFE professors Xu Guoxiang, Wu Chunjie and Cui Chang.



Most of the survey’s sub-indexes also fell. The economic evaluation index stood at 124.1, down 23.2 points from the prior quarter and 25.6 points from a year earlier, showing that consumers retain a positive outlook on the city’s economy, the academics said.



But the income evaluation index plunged to 91, the lowest recorded and the biggest decline among the sub-indexes, indicating that Covid-19 restrictions, including the city’s two-month lockdown, significantly impaired people’s earnings.



The purchase intent index was 89.7, down 2 points on the first quarter and 3.2 points from a year earlier, notching up the smallest declines among the survey’s sub-indexes. That means consumers still have some purchasing power and are positive about the economic future.



Overall, the expectations index was cheerier than the evaluation index, according to Xu and Cui, reflecting confidence in the gradual recovery and development of Shanghai's economy.



Source: Yicai