Consumer sentiment in China edged up in November from a record low, as confidence in the labor market improved and consumers became more confident about the prospects for business conditions, a survey showed Wednesday.
The Westpac MNI China Consumer Sentiment Indicator rose to 113.1 in November from 109.7 in October. Last month’s reading marked the lowest since the survey began in 2007.
“Although we viewed last month’s sharp drop as mainly an overdue correction bringing Chinese consumer confidence more in line with the softer tone coming from other economic data, there was a risk that sentiment could have gone on to register a deeper shock,” said Matthew Hassan, a senior economist at Westpac.
“A timely easing in policy appears to have helped spur this month’s rally,” he said.
The People’s Bank of China (PBoC) last month lowered its one-year benchmark lending rate by 25 basis points to 4.35 percent, to kick start an economy that grew at its slowest pace since the global financial crisis in the third quarter.