The newly published China consumer confidence index (CCCI) by Xinhua Finance eziData showed a slight rebound in Chinese consumer confidence in July, as a jump in future expectations offset continued pessimism regarding current conditions.

The index rose 0.4 point to 102.0 in July, but remained slightly below the 102.2 reading in May.

The relative stability in July resulted from a series of sub-trends - including steadily rising food prices, rebounding housing prices and fluctuating stock market prices - that tended to counteract each other.

Current conditions fell by 1.2 points, the second consecutive monthly decline, under the direct influence of rising concern on consumer prices and lower stock market returns. More demand for cars was offset by an even stronger increase in expectations of higher gasoline prices.

In contrast, future expectations rose 1.3 points, led by gains in both the one-year business outlook (up 3.1 points) and five-year business outlook (up 3.5 points). On the other hand, expectations on personal finance in one year fell for the second month in a row (down 1.3 points), affected by the declining sentiment on current personal finances.

The CCCI has fluctuated in the last few months due to concerns about sky high real estate prices, the unstable stock market and confusing post-Olympic economics. It's widely believed that such high real estate prices are most likely to harm Chinese's economic in the long run, while on the other hand, after the year-long unsuccessful government control on prices, consumers have little hope that price will drop. The growing real estate prices have destroyed confidence in local economic development planned for the next five years.

Vacillating statistics from the past few months showed people with both high and medium incomes were wary of the uncertainty of the Chinese domestic market after the Olympics. Experts explained although most people believed in a post-Olympics prosperous Chinese economy, they are worried about the future development of some currently overvalued industries such as the real estate sector.

Despite all the confidence in China's future economic prospects, people feel less free to spend when they realize problems affecting current economy, experts noted.

Xinhua Finance eziData China Consumer Confidence Index is a monthly index designed and conducted by eziData and University of Michigan's Institute of Social Research.

The survey this month was conducted through 1,546 telephone interviews from July 1 to July13. April 2007 survey results are set as the benchmark value of 100.