According to the sampling survey of 54,500 urban households, the per capita disposable income of urban households was RMB 5,374 Yuan in the first half of 2005, 93.1% of the per capita total income. This saw an increase of 11.6% year-on-year and a real growth of 9.5% after considering the factor of rising price, 0.8 percentage points higher than that in the same period last year. The per capita consumer expenditure was RMB 3,865 Yuan, increased by 10.9% year-on-year. The real growth for that was 8.9% after considering the factor of rising price, 0.2 percentage points higher than that in the same period last year.

Ⅰ.Proportion of employment in urban households declined

In the first half of the year, the proportion of employment per urban household was 50.8%, 1.67 percentage points lower than that of the same period last year. Among the employed population, employees in urban state-owned units and collective-owned units decreased while urban individual labors and employees in other types of economic units increased.

Ⅱ. Income

1. Components of income all increased

In the first half of the year, the average per capita total income of household was RMB 5,769 Yuan. Regarding the four components of the total income, salary income remained the major part of the total income, accounting for 69.0%, about 1 percentage point lower than 70.9% of the same period last year; net business income and transfer income (pensions, subsidies, donations and other) took proportions of 6.0% and 23.3% to the total income respectively, or 1.2 and 0.7 percentage point higher than each in the same period last year respectively; while property income (interest, dividends and rent) took a proportion of 1.7%, the same with that in the same period last year.

(1) Growth of salary income slowed down

In the first half of the year, per capita salary income of urban households was RMB 3,979 Yuan, a year-on-year increase of 8.9% but slower than the growth of 12.3% in the same period last year. The growth of salary income was the slowest among the growth rates of the four components of income.

Growth of salary income was attributed to two reasons: first, increased demands in coal, electricity and steel raised the profits of related enterprises, which increased wages, bonus and subsidies for their employees; second, provinces and cities like Jiangsu and Jinan carried out measures to notably raise salary for staff in administration and public service units in reference to the policy of “Sunny Salary” in other areas; third, provinces like Shanxi, Jiangxi and Ningxia raised minimum wage standards.

(2) Net business income increased sharply

In the first half of the year, per capita net business income of urban households was RMB 343 Yuan, a year-on-year increase of 37.8%, or 12 percentage points higher than the growth of the same period last year. Proportion of the net business income to the total household income was 6.0%, 1.2 percentage points higher over that in the same period last year.

Growth in the net business income was attributed to following reasons: first, laid-offs from state-owned and collective-owned enterprises gradually engaged in individual businesses; second, government carried out favorable and supporting policies to develop channels for household income, greatly increasing individual income and driving rapid growth in the net business income.

(3) Transfer income and property income grew steadily

In the first half of the year, per capita transfer income of households was RMB 1,347 Yuan, increased by 15.6% year-on-year, or 5.5 percentage points higher than that in the same period last year. Pensions, which took 76.4% of transfer income, grew 17.4%, being the major force to drive rapid growth of transfer income.

Per capita property income was RMB 101 Yuan, a year-on-year rise of 16.0%. House renting remained the first choice for households to invest. Per capita rent income was RMB 55 Yuan, or 55.0% of the property income and a year-on-year increase of 25.5%. Dividend was RMB 23 Yuan, 23.0% of the property income and a year-on-year increase of 1.8%.

2. Gap between high income group and low income group widened

The top 10% income group with highest income enjoyed per capita disposable income of RMB 15,288 Yuan (2.8 times the average of the nation), RMB 1,966 Yuan higher than that in the same period last year and up by 14.8% year-on-year.

The per capita disposable income of bottom 10% income group was RMB 1,512 Yuan (only 28.1% of the nation’s average), only RMB 115 Yuan higher than that in the same period last year and a year-on-year rise of 8.2%.

The ratio of per capita income of the highest income group to that of the lowest income group (10% of total surveyed households respectively) was 10.1: 1, widening from 9.5: 1 of the same period last year.

3. Comparison of incomes in East, Middle and West

East region enjoyed per capita disposable income of RMB 6,641 Yuan, an increase of 12.6% year-on-year or 1 percentage point higher over that in the same period last year. This growth rate was higher than those in both Middle region and West region.

Middle region saw per capita disposable income of RMB 4,403 Yuan, an increase of 11.3% year-on-year or 0.9 percentage point lower than that in the same period last year.

While West region enjoyed per capita disposable income of RMB 4,426 Yuan, a rise of 9.1% year-on-year or 2.6 percentage points lower than that in the same period last year.

The ration among income levels of East region, Middle region and West region was 1.51:1:1.01, income gap between East region and West region widening compared with last year’s 1.49:1:1.03 while income gap between Middle region and West region seeing no visible change.

4. Comparison of incomes in provinces and cities

Among 31 provinces (autonomous regions, municipalities directly under the Central Government), the five with the highest income were: Shanghai, Zhejiang, Beijing, Guangdong and Fujian. The ratio of the highest income to the lowest income among provinces (autonomous regions, municipalities directly under the Central Government) was 2.5:1, or a gap of RMB 5,754 Yuan. Jiangsu enjoyed the fastest growth of 17.9%, 14 percentage points higher than the lowest growth.

While among 36 large or middle cities, the top five were Shenzhen, Shanghai, Guangzhou, Ningbo and Hangzhou. The ratio of the highest income to the lowest income among these cities was 3.5:1, or a gap of RMB 10,475 Yuan. Nanjing experienced the fastest growth, 33 percentage points higher than the lowest one.

Ⅲ. Expenditure

1. Eight major categories of expenditure all climbed

Eight major categories of expenditure all increased to some extent year-on-year, with clothing, medicine and medical service, miscellaneous commodities and services, and transportation and communication all enjoying two-digital growths.

Indicators of living expenditure of urban households in the 1st half-year 2005

1. Expenditure on transportation and communication grew fastest

Transportation and communication remained the hotspot of household expenditure. In the first half of the year, per capita expenditure on transportation and communication was RMB 493 Yuan, a year-on-year increase of 17.7%, with growth of 30.9% in transportation and 6.6% in communication. By the end of June, per hundred households owned 3.15 cars, 1.11 more compared with the same period last year or an increase of 54.4%; per hundred households owned 131.8 mobile-phones, a year-on-year increase of 23.5%. The growth in expenditure on transportation and communication was significantly attributed to the increase in cars and mobile-phones owned by households and soaring fuel oil price.

2. Expenditure on clothing grew notably

With the rising living standard of households, people concerned more about brand and design of clothing and bought more high-grade clothing. In the first half of the year, per capita expenditure on clothing was RMB 433 Yuan, a year-on-year increase of 15.9% or 5.3 percentage points higher than that in the same period last year.

3. Expenditure on medicine and medical services continued to rise

In the first half of the year, per capita expenditure on medicine and medical services of households was RMB 300 Yuan, a year-on-year increase of 15.3% or 3.2 percentage points higher than that in the same period last year. Hereinto, per capita expenditure on medicine was RMB 158 Yuan, up by 9.1%; while per capita expenditure on medical service was RMB 94 Yuan, an increase of 27.7%. 

4. Expenditure on recreation, education and culture services saw slowed growth

As central and local governments exerted more efforts to rectify the casual charges in schooling, growth in education expenditure slowed down to some extent. In the first half of the year, per capita expenditure on recreation, education and cultural services was RMB 452 Yuan, a year-on-year increase of 6.2% or 8.4 percentage points lower than that in the same period last year. Hereinto, expenditure on cultural and recreational commodities was RMB 140 Yuan, a year-on-year increase of 6.2%; on cultural and recreational services RMB 107 Yuan, 13%; on education RMB 205 Yuan, 1.3%. The notable slowdown in growth of education expenditure also pulled down the growth of expenditure on recreation, education and cultural services.

5. Expenditure on food grew steadily

With the gradual rising living standard, quality of food consumption was also improved. In the first half of the year, per capita expenditure on food of households was RMB 1,477 Yuan, a year-on-year increase of 8.7% or a real growth of 4.2% after considering the influence of risen price, 0.4 percentage points higher than that in the same period last year.

6. Expenditure on services saw slowed growth

In the first half of the year, per capita expenditure on services was RMB 1,009 Yuan, a year-on-year increase of 11.4% or 7.7 percentage points lower than that in the same period last year.

2. Proportion of expenditure on social security to total household expenditure increased

In the first half of 2005, per capita expenditure on social security of urban households was RMB 338 Yuan, 49 Yuan more than that in the same period last year. The proportion of that to total expenditure was 6.5%, 0.45 percentage point higher year on year.

Ⅳ. Living conditions of low income households

1. Large population and heavy burden

The average household size of the low income households, accounting for 10% of total urban households, was 3.33 persons, 0.36 higher than the national average. While the average number of employed persons per household of the low income households was 1.26 persons, 0.25 less than the national average, indicating each employed person in low income household had to afford 0.67 person more than the national average level.

2. Proportion of salary income was low

From the structure of income, low income households had fewer employed persons in state-owned units and fewer persons who enjoyed adjusted salary in line with policies. The proportion of salary income to the total household income in low income households was 61.2%, 7.8 percentage points lower than the national average. While the proportion of individual business labors was high. Proportions of the net business income and transfer income to the total income were 12.0% and 26.1% respectively, 6.1 percentage points and 2.7 percentage points higher than the national averages respectively.

3. Income and expenditure balanced out

In the first half of the year, the per capita income of low income households was RMB 1,512 Yuan while the per capita expenditure was RMB 1,491 Yuan, with the propensity to consumption of 98.6%, basically balancing out.

4. Proportion of expenditure on food was large, on enjoyment low

In the first half of the year, the proportion of expenditure on food to consumption expenditure (Engel’s coefficient) of low income households was 49.3%, 11.1 percentage points higher than the national average. The proportion of expenditure on services to total was 21.7%, 4.4 percentage points lower than the national average; while the proportion of expenditure on transportation and communication to total was 7.4%, 5.1 percentage points lower than the national average.

5. Increase of food price slowed down and livelihood of low income households somewhat improved

In the first half of the year, per capita expenditure on food of low income households was RMB 735 Yuan, a year-on-year rise of 4.5% or 10.5 percentage points lower than that in the same period last year. The raised food price cost per capita expenditure of low income households RMB 26 Yuan more on living necessities including grain, oil, meal, fowl and eggs, but RMB 23 Yuan less compared with RMB 49 Yuan of the same period last year. The added expenditure accounted for 22.9% of the increased per capita disposable income, 6 percentage points lower than the same period last year. In the first half of the year, food price saw a year-on-year increase of 4.3% to urban households, 4.3 percentage points lower than the same period last year. The rise in food price had weakened impact on living of low income households.