Coronavirus: China’s consumers will not rescue economy when outbreak is over, survey shows

China has repeatedly said that the impact of the coronavirus will be short-lived and that it is still on track to achieve its economic development goals in 2020

But 31.4 per cent of respondents to a survey conducted by Rong360.com said they would not increase consumer spending after the outbreak

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According to the online survey conducted by Rong360.com, 31.4 per cent of respondents said they would not increase consumer spending even after the coronavirus had been brought under control. Photo: Reuters

Published: 6:15pm, 28 Feb 2020Updated: 11:04pm, 28 Feb 2020

Around a third of Chinese consumers will not increase spending once the outbreak of coronavirus has been brought under control, a private survey has shown, challenging Beijing’s hope that consumer expenditure will quickly rebound to cover losses suffered amid the epidemic.

China has repeatedly said that the impact of the coronavirus, which has infected over 78,000 people and killed over 2,700 in China alone, will be short-lived and that it is still on track to achieve its economic development goals in 2020.

However, according to the online survey conducted by Rong360.com, a Beijing-based firm providing financial and credit information and products, 31.4 per cent of respondents said they would not increase consumer spending.

More importantly, nearly two thirds, or 64.4 per cent, said they would be more “restrained” in spending in the long term, while another 12.6 per cent said they would cut spending, with only 11 per cent saying they would increase expenditure. The remaining 12 per cent said they would keep their lifestyle unchanged.

Spending on travel, pets, gifts and accessories would be among the first items to be cut, with around 30 per cent of the 1,000 respondents to the survey, which was conducted between February 11-17, saying they would reduce travel and entertainment.

For short-term spending, 68.6 per cent of respondents said they would increase expenditure after the epidemic, especially on entertainment, cosmetics, catering, movies, massages, fitness and sportswear.

The survey offers another glimpse into the cost of the coronavirus, with China’s National Bureau of Statistics expected to publish the official purchasing managers’ index on Saturday, which will be the first official indicator to measure China’s economic situation.