Consumer confidence rallied gradually in Q2, despite investor sentiment remaining comparatively cautious, according to the findings of a recent survey.

The quarterly Index of Consumer Confidence in Shanghai, developed by the Shanghai University of Finance and Economics, continued its recovery between April and June, showing a 7.5-point increase from the previous quarter, though it was down 10.1 points compared to the same time last year.

Specifically, the Consumer Evaluation Index reached 112.9 points, an increase of 9.4 points from the previous quarter, while the Consumer Expectation Index stood at 111.7 points, up 5.6 points from the prior quarter, Shine News reports.

“The rebounding consumer confidence index indicates that consumers' evaluation of the current economic situation in Shanghai is generally positive,” stated Xu Guoxiang, director of the university's Applied Statistics Research Centre.

Furthermore, the Income Evaluation Index reached 119.2 points, increasing by 10.8 points from the previous quarter and 4.9 points year-on-year. This was one of the few positive annual indices during the period, indicating a significant rise in consumer satisfaction with income. 

Among these, the Home Buying Timing Index increased by 6.5 points from the previous quarter to 64.5 points, suggesting that consumers' willingness to purchase a home has grown due to a series of favourable policies introduced earlier this year.

However, the year-on-year declines in purchasing sentiment for homes, cars, and household durables indicate that consumers are wary about making purchases. 

Conversely, the investor confidence index for the second quarter was 102.61 points, down 7.34 points from the previous year, reflecting a decline in investor confidence in Shanghai compared to the prior period.

Although the investor confidence index increased compared to the previous year, it still reflected a relatively pessimistic outlook.

“The recent economic and trade friction between China, the United States, and the Europe Union has heated up, and the risk of declining export market share has increased, resulting in a pessimistic mentality in terms of investment,” Xu stated.