In the first quarter of this year, the consumer confidence index continued to rise with the steady momentum, reaching 94.4 points in this March up by 1.2 points over last December of 2004.

    The consumer confidence index went up steadily mainly due to the expectation of income increase and the positive comment on the time of buying durable goods by consumers. Affected by the result of 2004 economic running, the consumer confidence index toward income climbed. The proportion of consumers who expect the individual or family income in the future will ascend or keep unchanged went up to 64% from the 59% of this January. At the same time, during the first three months of this year, the proportion of consumers who think that it¡¯s a suitable time to buy durable goods stayed around 70%, especially, that in this February reached 78%.

    The second factor supporting the consumer confidence index to rise was the general situation of national economy. Since the beginning of this year, driven by the economic growth inertia and inner power of economy, the national economy kept the good growth trend. To the general phenomenon of economy, the 69% consumers expressed ¡°very satisfied¡± or ¡°basically satisfied¡±. At the same time, there were about 60% consumers who held the relative optimistic expectation toward the China¡¯s economy in the next 12 months.

    The consumer confidence index in the first quarter presented the two characteristics as follows:

    1. The rise of expectation index were higher. In the first three months of this year, the expectation indices reflecting the economic prospect in the next several months from consumers were 94, 94.5 and 95.4 points, the satisfaction indices toward the present economic situation of consumers were 92.7, 93 and 92.9 points respectively, Relatively speaking, the future expectation of consumers was more optimistic.

    2. The consumer confidence index trended steady and strong. Since returning onto the rising track from the second half of last year, the consumer confidence index continued to rise for the 9 consecutive months with the small rise. In the first three months of this year, the confidence indices were 93.5, 93.9 and 94.4 respectively, presenting the steady trend.