China's industrial watchdog has predicted faster consumption growth rate in the second half of the year.
A report by the National Development and Reform Commission forecast that domestic consumption, spurred by the government's initiative to promote development of rural areas, will increase in the latter half of the year.
It estimated the consumption growth rate in the more developed eastern areas will stand at around 14 percent, while the rate in northeast China will reach about 12 percent.
The report made no predictions for the less developed western areas, saying only that the regional gap with the east in terms of consumer goods retail sales would narrow.
The latest data from the National Bureau of Statistics showed China's consumption rose 12.4 percent in the first half, up 0.4 percentage points from the same period of 2005.