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The MNI China Consumer Indicator rose for the fifth consecutive month in December,to the highest for a year and a half, as consumers felt more optimistic about their future personal finances.
The Consumer Indicator rose to 97.5 in December from 96.6 in November, the highest since June 2012. Both current conditions and future expectations improved in December, with the latter leading the increase.
Recent data on the economy has shown a continued improvement in economic conditions which has helped underpin confidence. It is also likely that the reforms announced after the third plenum meeting in November boosted expectations for the future.
More respondents reported that they expected the employment situation to improve over the coming 12 months, with the Employment Indicator hitting its highest level for a year and a half. Also, an increased proportion of respondents said business conditions compared with a year earlier improved, with the Current Business Conditions Indicator rising to the highest since June 2012.
In spite of the rise in overall confidence, optimism about future house prices fell sharply to the lowest level since June while consumers were the least willing to purchase a car since July.
Commenting on the data, MNI Indicators Chief Economist Philip Uglow said, “Having hit a near two year low in July, consumer confidence has rebounded sharply over the past five months, as economic growth has picked up.”
“Optimism following the recent third plenum announcements has helped to propel sentiment to the highest level since June 2012 as consumers hope that the reformswill bring them future benefits,” he added.
