A report released by the Regional Planning Department under the State Development and Reform Commission predicts that consumption will continue growing fast in the second half of this year.

The report says that the state's policy of building a new socialist countryside will boost domestic consumption. In the eastern coastal region, consumption is expected to grow by 14%. In the west, due to a succession of preferential policies offered to farmers, local consumer goods retail sales will grow and the gap of these retail sales between the east and the west will narrow. In the northeastern region, consumption is expected to increase by 12%.

Consumption structure in the eastern region will take a gradual turn for the better and its consumption growth rate is still the highest of any other regions.

Automobile, housing, and telecommunication expenditure remain popular items among consumers. In addition, people's chase for brand name goods and environmental-friendly goods has formed a new consumption trend. Consumption will continue to grow fast in the catering sector, tourism, health-related goods and service, education, culture and holiday-related goods and service. The consumption gap between urban and rural areas will become smaller.

The report predicts that due to the state policy of building a new socialist countryside, consumption in the western, northeastern and central regions will grow faster than previous years. However, their growth rate will not be significant in the second half of the year.

In the western and central regions, due to a series of preferential policies offered to farmers, such as the abolition of agricultural taxes and tuition fees, farmers' income has increased greatly, and the consumption market will be expanded as well. Meanwhile, with the acceleration of industrialization and urbanization in the regions, consumer goods retail sales will grow faster than expected.

In the northeast, the retail sales have been on the increase. Since uncertain factors remain in consumption items that are closely linked with people's daily life, such as medical service, housing, education, and pension, the consumption of other retail goods has been affected.

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