Data Analysis of Consumption Upgrading of Urban Residents in China

Abstract

In the process of deepening the supply-side reform, China’s economic operation has shown a good momentum of steady development, and consumption has begun to play a prominent role in promoting economic growth. However, there are still many different opinions on whether it is “consumption upgrade” or “consumption downgrade”. Based on the eight types of consumption data of urban residents in China from 1993 to 2016, this paper uses the time-series global principal component analysis method and the ELES model to empirically analyze the longitudinal time series data from the three levels of consumption level, consumption structure and consumer satisfaction. The results show that the consumption level of urban residents is increasing steadily, the consumption structure is continuously optimized, and consumer satisfaction is significantly improved. At this stage, China is indeed in a period of consumption upgrading, rather than the consumption reduction proposed by the private sector. Therefore, under the background of supply-side structural reform, measures such as improving the income distribution system, improving the quality of labor supply, and developing scientific and medical equipment are the fundamental ways to accelerate the upgrading of China’s consumption.