Higher income fuels consumer spending

The beginning of the year is usually the slack season for automobile sales, but salesman Lu Wei saw his sales volume surge by a dozen in March, a growth he could not expect several months ago when the global financial crisis triggered the economic slowdown.

"It seems consumers are loosing their purse strings after holding back for a few months," Lu said, but the question that lingered in his mind was whether such robust sales are sustainable amid the uncertain economic scenario.

Lu's concern, shared by many of his fellow colleagues, comes against the backdrop of hopeful signs emerging in the economy, suggesting domestic consumers are now less tight-fisted than in recent months.