China’s Consumers Keep Tight Grip on Their Wallets

China’s consumers remained reluctant to spend in the first three quarters, with household spending growing more slowly than disposable income.

Per capita disposable income rose 5.3% year-on-year in nominal terms, according to data released Monday by the National Bureau of Statistics. Per capita consumer spending grew 3.6%. 

Caixin calculations show that the share of disposable income spent on consumption fell 1.06 percentage points year-on-year to 65.3%. Since comparable first-three-quarter data became available in 2013, the ratio has been lower only in 2020 and 2022, when the Covid-19 pandemic hit particularly hard.

Per capita net property income rose just 1.6%, well below overall income growth, as adjustments in the property and stock markets continued to weigh on household earnings.