Chinese consumer confidence in Q2: Nielson

BEIJING -- China's consumer confidence in the second quarter dropped from the first quarter but was still higher than the global average, said a Wednesday report by international market research firm Nielson.

Nielson's consumer confidence index for China stood at 105 in the second quarter, down from 110 in the previous quarter, said a statement from the company.

However, it was still higher than the global index of 91, the statement said.

The decline was a reasonable adjustment, since the index had increased over the past two quarters and hit its highest level since 2005 in the first quarter of this year, said Yan Xuan, president of Nielson Greater China.

Chinese consumer confidence has been affected by the European debt crisis, the country's economic growth slowdown and export reductions, but is still very positive compared with the global average, Yan said.

The biggest factor affecting consumer confidence was lower income expectations. About 66 percent of consumers surveyed were optimistic about their future income, down 7 percentage points from the first quarter, according to the statement.

The consumer confidence index for the country's rural areas dropped but was still eight points higher than the national average, the statement said.

Although the index for the country's biggest cities increased from 101 in the first quarter to 107, the highest level seen since 2009, indices in other cities dropped by different degrees, the statement said.

The economic growth slowdown and fewer new jobs might affect the confidence of rural residents and people in small cities, while greater employment and stable housing can give residents in big cities better expectations for their future incomes, Yan said.

Nielson's consumer confidence index, issued quarterly, is based on surveys of 3,500 consumers in the country's cities and rural areas.