A customer scans a QR code for payment at a market in Hohhot, Inner Mongolia on Oct 18, 2018. (Photo: IC)

China's consumer trend index (CTI), released by Nielsen, a global measurement and data analytics company, increased further in the first quarter of this year as the economy continued to stabilize, a new report said on Friday.

The index rose to 115 points during the Jan-March period from 113 points at the end of 2018.

An index reading of above 100 indicates consumer optimism and factors aspects like perceptions about local job prospects, personal finance and the willingness to spend.

China's economy beat market expectations to grow by 6.4 percent on a yearly basis in the first quarter, virtually unchanged from the GDP expansion in the previous quarter.

"The Chinese economy continued to operate in a reasonable range in the first three months, laying a solid foundation for the improvement of the consumer trend index we tracked," said Andy Zhao, president of Nielsen China.

According to the Nielsen study, among the three factors that affected the index, job prospects saw a substantial increase by climbing five points to 79, while both personal finance and willingness to spend increased by three points to 61 and 70, respectively.

"This is attributable to the government's efforts to deepen reforms in corporate taxes and fees, which in turn helps to create a favorable environment for stable employment," said Zhao. "The reforms of individual taxes and fees have improved the personal finances of consumers and their ability to spend."

Gao Yuwei, a researcher with the international finance institute under the Bank of China, believes that the individual tax reduction scheme is more favorable for the low and medium income group, which will lead to higher disposable incomes and consumption growth. According to Gao, the growth rate of consumption will probably stand at 9 percent this year, maintaining the high level of 2018.

A research note from China International Capital Corp, an investment banking firm, also shows that consumption growth will rise this year on higher disposable incomes arising from tax cuts, improved credit financing for individuals and an optimistic outlook for the capital market.

Nielsen data also showed that the middle-income women's consumer index was the most eye-catching at 130 points, far higher than the national average of 115 points. Moreover, their job prospects, willingness to spend and personal finance were all higher than the overall average.

"Middle-income women are often the dominant players in household consumption. They have become the main driving force of the consumer market. Companies must pay attention to the diverse needs of women and their requirements," said Zhao.