Spending up among bankcard holders
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Chinese bankcard holders strengthened the consumer confidence index following counter-inflation measures in February, an industry index showed Tuesday.
The bankcard consumer confidence index grew to 86.04 in February, up 0.51 points from January, said China UnionPay Co yesterday.
The higher the index, the more bankcards are used to pay for non-essential -expenditure such as luxury goods and travel.
"Bankcard holders increased consumption of non-daily necessities such as gold and jewelry during the Spring Festival holidays that fell in February," the -Shanghai-based company said in a statement.
Gold and jewelry are seen as a barrier against inflation and a safe market.
The central government's measures to rein in the red-hot real estate market also allowed consumers to delve deeper in their pockets for big ticket expenditure, UnionPay, China's sole bankcard transaction company reported.
The central government has raised downpayments on second homes, banned credit for third homes and limited homes that families can buy. Home transactions dropped while home prices are showing signs of steadying.
In February, bankcard holders' expenditure in jewelers accounted for 3.7 percent of the total sample, up 1.5 percentage points from the previous month.
The index tracks expenses of the card users, which include 200,000 individuals in affluent cities.
In February, bankcard holders' spending in supermarkets dropped 30 percent when compared with January as government measures to stabilize prices bear fruit.
The consumer price index, the main gauge of inflation, rose 4.9 percent in January. China targets a full-year inflation in 2011 of around 4 percent. China is set to post its February inflation on Friday.
On a year-on-year comparison, the index dropped 0.59 points, however.
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