In the article, Roseman explains that “the income ratio between urban and rural residents stood at 3.13:1 in 2011, meaning city dwellers’ average income was 3.13 times that of rural people. The ratio shrank from 3.23:1 in 2010 and 3.33:1 in 2009.”

It continues, stating that the results of a survey show that the per-capita wage income of residents in rural areas increased by more than twenty percent in 2011, and that wages accounted for more than 40 percent of these residents’ incomes.

According to the NBS, the jump in income levels in rural areas is a result of migrant workers throughout 2011. Still, the falling prices of produce and other farming products had a negative impact on farmers’ incomes.

“Consumer prices rose 4.1% from a year earlier, the lowest in 15 months and well below July’s peak of 6.5%,” he wrote. “It was only the fifth consecutive month of receding inflation. However, China’s consumer price index only edged 0.1 percentage point lower from November, compared with larger 1.3 and 0.6 percentage point drops in the previous two months.

“Analysts said that seasonal factors were partly to blame for the more moderate dip in inflation, as Chinese New Year fell earlier in 2012 than in recent years, fueling a mini-spending splurge in December, which helped push up food prices.”

Adam Roseman of ARC China discussed the trend in a newsletter. He wrote: “The headline China Consumer Sentiment Index and all seven sub-indexes rose in December 2011, the research company said, but remained below levels seen at the end of 2010 and early 2011, before the domestic economic slowdown prior to Europe’s simmering debt problems morphing into a fill blown crisis at the end of summer.

“The total index measuring consumer confidence rose to 89.0 in December from 86.7 the previous month (which was just shy of September’s record low of 86.5). The index measuring current confidence rose to 91.4 from 87.3 in November and 89.2 in October, while that measuring future expectations rose to 87.7 from 86.3 in November but remained below October’s 88.3.”

Roseman quotes Liang Haoji, one such consumer, who said “I’ve been fond of high-quality coats since I was very young. A good quality jacket priced at no more than 20,000 yuan is acceptable to me. I work hard, so I should treat myself better,” he added.

Though global growth may have flatlined, China has become one of the primary players in the world’s luxury market.

“Following China’s entry into the WTO, global luxury brands are jostling to expand in a country that opens wider,” explained Michael Ouyang of the World Luxury Association.

“Cooling red-hot housing prices is just like putting out a wildfire,” explained Wang Haibin of Shenzehn World Union Properties Consultancy Co. “Now we can say the fire won’t spread further, but it will still take time before its extinguished.”

In the report, Roseman writes: “Consumers spent a record high 7.1 billion yuan ($1.1 billion), up an annual 17.6%, at 5,000 stores of 456 large and middle sized local retailers during October 1^st to 7^th.”

Though last year’s National Holiday week yielded more sales, this year’s increase still holds a 6.1% higher record than the Spring Festival.

Chen Linhui of the Department of Foreign Trade and Economic Cooperation explained that the measures will induce a slowdown in export growth as well as boost domestic consumption.  “They will include simplifying the approval process for domestic sales, establishing convenient financing, expanding sales channels and enhancing brand image,” he said.

He quoted Xie Zhenhua of the National Development and Reform Commission, stating: “China will soon release detailed plans on ensuring that its goal for reducing carbon intensity from 2011 to 2015 is attainable, and it has started looking at technical options for cutting carbon dioxide emissions after 2020.”

Su Wei of the Department of Climate Change of the NDRC also said “The targets surely need to be handed over to local governments, and a specialized blueprint for cutting greenhouse-gas emissions is a necessity.”

Adam Roseman of ARC Investment Partners explained in a newsletter, stating that:

“A figure above 50 denotes expansion, while a reading below that level points to contraction. At its current level, the Chinese PMI suggests that manufacturing growth has nearly stalled in month-on-month terms. The question now is whether the next step for Chinese factory growth will be outright contraction or stabilization. A separate PMI published by HSBC a week ago had pointed at contraction, but the official PMI on Monday offered grounds for cautious optimism.”

Jean Sun, a partner at PricewaterhouseCoopers China, said “Despite the decrease in China’s IPO market activity in the first six months this year, we believe the momentum remains robust for 2011, due to high confidence in the growth of China’s economy and domestic demand. Other factors, such as the large amount of capital and limited investment channels, will also help stimulate the market.”

PwC also predicted that China’s IPO market leaders will be the manufacturing industry, information technology, financial services and retail, consumer goods and services.