China consumers to spend more on spas, travel

Hong Kong

CHINA'S consumers are ignoring the bears. Consultancy McKinsey & Co is tipping that China's shoppers will increase their spending by 10 per cent per year through the end of the decade as incomes rise. Some 55 per cent of consumers expect a significant wage increase over the next five years.

It's not just staple goods that will be filling the shopping trolleys. Consumers are spending more on luxury items such as spa visits, travel and entertainment. The shift is just another sign of China's economy moving away from one that is fuelled by heavy industry and exports and towards one where consumers and services drive growth.