China Consumer Sentiment Improves After October Plunge

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.


Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.