Chinese consumers' confidence picked up in the fourth quarter of 2011, as inflation pressure gradually eased and the income outlook improved, the Nielsen Company reported on Friday.

Consumer confidence returned to the level of the first quarter of 2011, after falling in both the second and third quarters, according to the Nielsen China Consumer Confidence Report.

"A brighter employment and income outlook for this year and increasing willingness to spend, combined with inflation easing, were the main drivers of China's consumer confidence rebound," said Karthik Rao, managing director of Nielsen Greater China.

"As inflation stabilized and dropped to its lowest level in December 2011, consumers had more disposable income in their wallets and reignited their discretionary spending across most sectors," he added.