State: let the wealth effect lasts for a period of time

An information center: http://, consumption growth is expected to report to peak this year 11-year high

State economic analysis group provides reports that current spending, rapid growth with sustainability, it is expected that in 2007, the growth of social retail 15.8% invasive since 1997, the fastest growth. The report also recommends that the management of the stock market regulation should not be too big.

The report noted that the current consumption shows strong acceleration of growth, is the current round of economic cycles, since the start of the best state of growth in consumption. Preliminary estimates, in the first quarter of this year retail's contribution to the economic growth rate of 39.4%, higher than last year's first quarter increase 11.6 percentage points higher than last year's increase 3.3 percentage points.

Currently, the unit group, such as non-personal consumption accounts for the total consumption is rising; meat, eggs, oil prices will be a strong agricultural and sideline foods promote their consumption growth; in addition, the performance of civil service and public institutions are implementing wage, will promote the growth of urban residents ' income. Report on the initial estimates, this year will achieve social retail 88482.8 billion yuan, an increase of 15.8%. This increases to 1-5 months, accelerating 0.6 percentage points higher than in 2006, an increase of 2.1 percentage points, the highest since 1997 retail nominal growth of maximum speed. Consider inflation factors, the actual growth this year consumption about 12.8%, higher than the same period last year 0.2 percentage points.

The report recommends that the management stock market regulation should not be too big, the focus should shift to severely punish market manipulation, etc., so that capital market wealth effect with a certain degree of continuity to enhance consumer confidence, expanding consumer is useful. In addition, price regulation and economic growth and the expansion of consumption. If this year's annual economic growth of up to 11%, 3-5% of the price increase should be acceptable range.