MCKINSEY - 2023 China Consumer Report

The MCKINSEY 2023 China Consumer Report provides an overview of the current state of the Chinese economy and how it is impacting consumer sentiment. The report notes that recent macroeconomic pressures have sapped Chinese consumer sentiment, with stock market sell-offs, declining property transactions, and mobility restrictions due to COVID-19 clouding consumers' outlook. The report highlights that China's consumer confidence index, calculated by China's National Bureau of Statistics, dropped below 90 in April, a record low. According to the report, Chinese consumers have doubled-down on their intent to save their money rather than spend it. The report cites a nationwide survey of Chinese consumers, which found that 58 percent of urban households indicated their desire to "put money away for a rainy day," the highest level since 2014. The report notes that despite these economic headwinds, and the decline in consumer confidence, China's economy continues to exhibit a certain level of resilience, with nominal disposable income per capita rising by 5.3 percent in the first nine months of 2022.