CHINESE consumer confidence rose in the first quarter of the year to the highest level since 2007 as people became more optimistic over their future, a survey showed yesterday.

The Consumer Confidence Index in China climbed to a three-year high of 108, bolstered by better employment prospects, according to a survey by Nielsen Co and the Economic Monitoring and Analysis Center under the National Bureau of Statistics.

The survey interviewed 3,500 people across the nation, and found confidence rose faster in rural areas than in cities.

"With stronger economic recovery, Chinese people are more confident about their future, and the confidence has been restored to the pre-crisis level," Nielsen said in a statement.

The index rose 19 points last year while a reading above 100 indicates expansion.

Of the respondents, 71 percent deemed the employment situation to be "good" or "very good," up 9 points from the previous quarter, while 67 percent predicted "good" or "very good" personal wealth circumstances.

However, people's willingness to spend fell slightly due to soaring asset prices. The survey found 43 percent of respondents said it was a good time to purchase, down 3 percentage points from the previous quarter.

"People tend to prefer saving money. One possibility is that they have to cope with ever-rising housing prices," said Mitch Barns, president of Nielsen China. "Another possibility is that people are still concerned about the social safety net, health care in particular."