(Yicai Global) Oct. 17 -- Consumer and investor confidence in Shanghai is rebounding as the nation's economic performance begins to stabilize.
The consumer confidence index for the city rose by 3.8 points on the year and 5.1 points on the quarter in the third quarter of this year, reaching an all-time high of 121.4, data from socioeconomic indices released by the Shanghai University of Finance and Economics yesterday.
Investor confidence came in at 116.95, surging 13.3 points on the year and 12.44 points from the previous quarter. The figure falls within the 'optimistic' range, showing Shanghai investors have a positive outlook.
Main consumer confidence indices have hit new highs in the third quarter on a stronger-than-expected rebound in economic performance, said Xu Guoxiang, head of the Applied Statistics Research Center at the university. Consumers' growing confidence in the city is attributable to a visibly increasing upturn in the economy and a pickup in employment figures.
From a macroeconomic perspective, international rating agencies have upgraded their forecasts for China's economic growth as concerns about its economy crashing and financial risks have subsided. The global economy is also on the up, with momentum still rising. These factors, paired with China's growing importance in the worldwide economy, contributed to the boost in consumer confidence.
The Shanghai consumer index is developed based on two indicators, consumer reviews and expectations. The index fluctuated but continued to rebound from a trough in the second quarter of last year before hitting an all-time high in the third of this year.
The index runs from 0 to 200, with a figure above 100 suggesting optimism and below the midway point showing pessimism about the local economy overall.