A study on factor analysis and cluster analysis for national consumption expenditure

Abstract

The government work report points out that it is necessary to make the expansion of domestic demand a strategic base for development, while maximizing the potential of domestic demand. It is evident that expanding consumption, raising consumption levels and accelerating the construction of a sound domestic demand system play an important role in unblocking the national economic cycle and enhancing the main role of China's general cycle. Consumption is the main driving force of economic development, especially since the reform and opening up, China's economic development has entered a "new normal". As the standard of living of Chinese residents has increased, the overall consumption level of the population has also risen to varying degrees, making it important to analyze the consumption situation of Chinese residents. This paper uses a combination of factor analysis and cluster analysis based on the statistical analysis software SPSS 26.0 to analyses the consumption situation in each province and to determine the impact of the level of economic development on residents' consumption in each region.