According to a new survey, more than half of Chinese consumers are tightening their shopping budgets for the upcoming Double 11 shopping spree that falls on November 11.

Many investors see The Double 11 shopping festival as an indicator of Chinese consumer spending. It is an essential thermometer for the health of the economy. This tightening could deal a blow to China’s economic recovery.

Nearly 40% of the more than 2,300 respondents to a survey said their budget for the online shopping festival had dropped 30% from last year. 70% of respondents plan to participate in the shopping spree. But, nearly 70% of consumers have a budget of less than $275 (2,000 yuan).

A 28-year-old man said he still needs to save money amid a slowing economy. A woman said she would only buy essentials during the holiday season.The pandemic makes many people shop more cautiously. The manufacturing purchasing managers (PMI) index fell to 49.2 in October from 50.1 the previous month.

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