Optimistic report on household income debated

The National Bureau of Statistics (NBS) reported that growth in disposable household income outpaced overall economic growth in the first half of the year, but the finding is contradicted by other data, the South China Morning Post reported. Per capita disposable income of urban households was US$1,294, a year-on-year increase of 9.8% and a real growth of 11.2% after deducting price factors, the NBS said. The growth was largely thanks to government policies to boost income and domestic consumption to revive growth. The report contradicted a recent survey by the central bank, which indicated that urban residents’ impressions of their income levels had dropped to their lowest levels since 1999. The survey was conducted in 50 cities in late May and found that confidence in incomes declined 20% in the second quarter compared to the first quarter. However, the NBS report said that urban consumption per capita was also on the increase, rising 8.9% year-on-year, a real increase of 10.3%.