Concerns over global and domestic economic recovery dragged consumer confidence in Shanghai to a two-year low in the second quarter of the year, a survey showed yesterday.

The Index of Consumer Confidence in Shanghai, a quarterly gauge compiled by Shanghai University of Finance and Economics, shed 8.7 points from the first quarter to 109 points, the lowest since the second quarter of 2014.

A reading above 100 points signals optimistic economic outlook.

Xu Guoxiang, director of the university’s Applied Statistics Research Center, said the combined impact from weaker-than-expected domestic economic indicators, uncertainties arising from Britain’s decision to leave the European Union, and the weak stock market and the yuan exchange rate have clouded consumer hopes for economic recovery and willingness to spend money.

In order to boost consumer confidence, Xu said Shanghai should encourage private investment, increase financial support for the private sector, and continue to upgrade the services sector.

But a separate Index of Investor Confidence by the university rose 6.21 points from the first quarter to end positively at 104.14 points.

Institutional investors showed a sharp rise in investment confidence while that of individual investors remained pessimistic, according to the survey.

(Source: ShanghaiDaily  Author: Feng Jianmin)