Chinese consumers are responding to a slowing economy by saving more and putting less money into risky assets, FT Confidential Research data show. Although the government is cutting income tax to boost consumption, the extra take-home pay is likely to wind up on deposit as consumers become more nervous.
FTCR data suggest the government should not expect consumers to help support the economy. Even if growth can be stabilized by stoking investment activity, rising household debt and the likelihood of a prolonged and intensifying tussle with the U.S. mean consumers will remain wary.
