China’s consumer confidence index rose to 154.2 in August, the highest level in six months.

The ANZ-Roy Morgan survey showed sentiments improved in eight cities, but declined in six by varying degrees.

Notable increases of 7.3 points, 16.7 points and 1.2 points were recorded in Beijing, Shanghai and Guangzhou, respectively.

“We believe rising consumer confidence in August could give a boost to retail sales, possibly reversing the disappointing July retail sales numbers released last week,” said ANZ’S Greater China chief economist Li-Gang Liu.

However, ANZ-Roy Morgan’s reading of inflation expectations continues to edge down, suggesting that overall domestic demand remains sluggish.