Due to the financial crisis, the urban residents don’t anticipate much for the income growth in the future and they tend to be more prudent in consumption this year. But with the state policy of “maintaining growth and stability by expanding domestic demand”, the consumption expenditure of urban residents continues to increase, especially driven by the purchase tax reduction for small cars and household appliances trade-in. From January to September this year, the per capita consumption expenditure of urban residents in Nanning reached 8486 yuan, an increase of 6.27% compared with the same period last year.

The automobile purchase is the biggest shining point in urban consumption. In 2009, the auto market was livened up by a series of policies such as free road maintenance and reduction on vehicle purchase tax, which stimulate residents’ desire to buy cars. According to relevant statistics, from January to September, every 100 urban residents in Nanning bought 2.27 cars, an increase of 1.87 times compared with the same period last year; the per capita expenditure on auto purchase was 468 yuan, an increase of 1.85 times; the per capita expenditure on transportation was 933 yuan, up 51.12%.

The expenditure on food, clothing and housing keeps steady. From January to September, the growth rate of expenditure on food of urban residents declined by small margin because of the negative growth in consumer price index of food. The per capita expenditure on food of urban residents was 3301 yuan, a decrease of 0.84% compared with the same period last year; and the per capita expenditure on clothing was 594 yuan, a decrease of 3.6% compared with the same period last year. Owing to the steady price of water and electricity, the price for liquefied petroleum gas declined by large margin compared with the same period last year. The per capita expenditure on housing of urban residents within this period was 661 yuan, an increase of 3.6%, which dropped by 16.51% in the growth rate over the same period last year.