BEIJING, -- China's consumer confidence rebounded in May as economic activity thrived following government policies to secure economic growth, according to an index released on Tuesday.

The Bankcard Consumer Confidence Index (BCCI), compiled by Xinhua News Agency and China UnionPay, a national bank card association, edged up 0.32 from April to 83.99 last month, reversing a slight 0.09 month on month drop registered in April.

A higher index reading shows an increase in consumers' desire to spend.

A report released along with the index attributed the rebound mainly to rising consumption of daily necessities. Bankcard users' consumption at department stores and catering rose by 13.75 percent and 4.9 percent from April, respectively.

The consumption of leather bags by bankcard users had the biggest surge, with a 32.92 percent month on month increase in May thanks to price drops of global luxury brands such as Louis Vuitton. Sales of home appliances rose 4.09 percent, buoyed by a gradually warming real estate market.

The report forecast that consumer confidence is likely to rise steadily following a slew of government policies to secure economic growth. At least 12 documents supporting growth were released by the State Council in May, ranging from manufacturing upgrades to asset securitization.

Official data showed that China's purchasing managers' index for the manufacturing sector rose by 0.1 percentage point month-on-month to 50.2 in May.

The BCCI, first released in April 2009, is based on bank card transaction data and analyses of changes in urban consumption.