.jpg)
The MNI China Consumer Indicator fell for the third consecutive month, albeit only slightly, as optimism about Personal Finances weakened to the lowest since the summer of 2013.
The Consumer Indicator eased to 91.4 in March from 91.5 in February, the lowest for seven months and below the 94.2 reading registered in March 2013.
Consumer confidence has fallen in recent months as weak economic data and concerns over the financial system have hurt sentiment.
Personal Finances took a hit amid growing concerns over the default of Wealth Management Products and concerns about overheating in the housing market. The Current Personal Finances component declined to the lowest since August 2013, while Expected Personal Finances were the weakest since July 2013.
Respondents were the most concerned about future job prospects for eight months. The Employment Outlook Indicator fell for the third consecutive month and dipped below 100 for the first time since August 2013.
Sentiment on the housing market was still positive, but fell in March amid concerns about the sustainability of the rise in house prices. An increasing number of respondents commented that house prices were too high and some warned that they were likely to fall in the future.
Commenting on the data, Chief Economist of MNI Indicators Philip Uglow said, “While sentiment was broadly stable in March, it is at its lowest since August last year. Given the weakening in the economy, consumers are increasingly concerned about their personal finances and the outlook for jobs.”
“The Chinese authorities need to try and rebalance the economy away from investment towards consumption. It will take time, though, for consumption to take up the slack, and could potentially be squeezed as a wider slowdown in activity hits sentiment and consumer spending.”
