Chart of the Day: Growth in Personal Spending Bounces Back

* Nominal growth rate, unadjusted for inflation, stood at 8.4% in 2018

* Urban residents’ personal consumption expenditures reached 26,112 yuan, more than double that of rural residents, which was 12,124 yuan

(Beijing) — Growth in China’s personal-consumption spending bounced back in 2018, as authorities stepped up their efforts to encourage the nation’s consumers to open their wallets.

Chinese people spent an average of 19,853 yuan ($2,929) last year on a basket of goods and services, including health care, accommodation and clothing, up from 18,322 yuan in 2017, according to official data released today (link in Chinese).

The real growth rate of China’s personal consumption expenditures, taking into account the change in prices, was 6.2% in 2018, up from 2017’s growth rate of 5.4%, according to data published by the National Bureau of Statistics (NBS). The 2017 figure was down from 6.8% in 2016.

The nominal growth rate, unadjusted for inflation, stood at 8.4% in 2018, according to the official data.

In 2018, urban residents’ personal consumption expenditures reached 26,112 yuan, more than double that of rural residents, which was 12,124 yuan, according to official data. The real growth rate for rural residents, however, surged 8.4%, compared to 4.6% for urban residents.

Graphic: Gao Baiyu/Caixin

The top three categories on which consumers spent the most cash were food, cigarettes and alcohol, which accounted for 28.4% of all expenditures, followed by accommodation, at 23.4%; and travel and communication, at 13.5%. The cost of accommodation has taken up a higher proportion this year, up from 22.4% last year, according to NBS data.

The NBS reported that national per capita annual disposable income reached 28,228 yuan in 2018, up 6.5% from the previous year, adjusted for inflation.

Contact reporter Charlotte Yang (yutingyang@caixin.com)