Consumer confidence rises over lower inflation (2)

Rick Kash, vice-chairman of Nielsen Group, said the economy had bounced back in the third quarter.

He cited the fast growth of furniture sales as an indication. According to the bureau, total retail sales in China increased 14.2 percent in the first seven months of the year, but furniture sales increased by 31.2 percent during the same period.

"The much faster growth in the furniture sector pointed to a recovery in the housing market which will help boost the Chinese economy next year," said Kash.

Meanwhile, domestic consumption played an increasingly important role in fueling GDP growth.

"With the fast growth of China's middle class and the urbanization process, people will be more willing to spend and that will help the economy achieve a soft landing," Kash added.

Rural Chinese consumers remained the most confident segment of the population in the last quarter at 113 points, the same level as the previous quarter and a 3-point year-on-year increase.

Confidence in third-tier cities, however, dropped 1 percentage point to 98, followed by second-tier cities, mainly provincial capitals, at 96 points, according to the survey.

"Those cities have been the most affected by the export slowdown since the start of this year," said Yan.

"First-tier cities on the other hand are making progress toward a more service-based economy and thus seemed better at insulating workers from some of the manufacturing doldrums that China experienced earlier in the year."

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