Pursuits
China’s Consumer Boom Risks Slowing as Income Gains Moderate
- Private indicators show weakness beyond main retail sales data
- Household income growth slowed to 6.5% in first half of year
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Chinese consumers, whose spending helped underpin the first-half expansion this year, may not be able to deliver a repeat performance in the second as income growth slows.
Household income growth slumped to 6.5 percent in the first six months from 7.6 percent a year earlier, data released Friday showed. Headwinds on consumer spending may increase as officials signal they will step in to curb pay gains to keep manufacturing competitive with rival nations that have cheaper production costs.