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Chinese sentiment steps in elevator, hits 'Lobby'

  • Author:naky
  • Source:www.diecastingpartsupplier.com
  • Release on:2015-10-29
Nevermind the resilience of the Chinese consumer.
The Westpac MNI China Consumer Sentiment indicator sank to a record low in eight years of data this month, falling 7.2 per cent to a score of 109.7.

Before this month's decline, the index has registered gains for four straight months in a trend that seemed downright bizarre. The economy was slowing throughout the summer, the country's equity bubble popped in June and the People's Bank of China had to devalue the renminbi in August.

"Chinese consumer confidence seemingly underwent a reality check in October, wiping out the gains accumulated since May," said MNI, a part of Deutsche B?rse Group.
MNI recorded "a renewed sense of pessimism across all components" including a hefty downgrade to the outlook for business conditions - the one-year outlook fell 10.3 per cent, while the half-decade outlook fell 8.2 per cent. Household finances were also weaker.

"When it comes to consumer sentiment this year, it's been a case of up by the stairs, down by the elevator," said Philip Uglow, chief economist at MNI. He added:“Although there's no escaping the challenges faced by the Chinese economy at the moment, we've seen confidence react positively to policy announcements in recent history and given the volatile environment we find ourselves in, we caution against placing too much emphasis on one month's result.”