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The MNI China Consumer Indicator rose for the third consecutive month in October,led by a significant improvement in Current and Expected Personal Finances.
The headline indicator rose to 95.7 in October from 92.4 in September, posting the highest reading since June as both current and future conditions increased.
The recent rise in confidence mirrors the pick-up in the economy seen since the end of July and puts sentiment above the average of 93.9 for the past year and also the series average of 95.1.
October’s gain in Consumer Confidence was led by continued improvement in confidence in both East China and Middle/West China, with the latter showing the largest increase. Among the three major cities, confidence rose in Guangzhou and Shanghai but fell sharply in Beijing.
Perceptions of current business conditions improved for the third consecutive month in October to the highest since March.
The Employment Indicator rose strongly in October moving further above the breakeven level, and leaving it in-line with the higher levels seen during the first half of the year.
he Car Purchase Indicator also rose in October as consumers’ willingness to buy a car rose to the highest level for three years, a reflection of the improvement in households’ finances.
Commenting on the data, MNI Indicators Chief Economist Philip Uglow said, “A significant number of respondents felt much better about their finances in October and there was a strong improvement in employment expectations.”
“The rise in confidence over the past few months is further evidence that economicgrowth has stepped up a gear since July,” he added.
