Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Great Fall Of China Doesn't Faze Chinese Consumers

Published 09/30/2015, 10:53 AM
Updated 09/30/2015, 11:30 AM
© Reuters. Customers walk in a supermarket in Shenyang, in northeastern China's Liaoning province. Consumer sentiment in China has been on the rise for four straight months.

© Reuters. Customers walk in a supermarket in Shenyang, in northeastern China's Liaoning province. Consumer sentiment in China has been on the rise for four straight months.

By Owen Davis -

© Reuters. Customers walk in a supermarket in Shenyang, in northeastern China's Liaoning province. Consumer sentiment in China has been on the rise for four straight months.

Chinese consumers are optimistic even in the aftermath of a Shanghai stock market rout and an economic slowdown. Consumer sentiment in China rose to its highest point in more than a year, according to Westpac MNI China Consumer Sentiment Indicator.

The reading of 118.2 was a 1.5 percent increase from August, the fourth straight month of improved sentiment and the strongest measure since May 2014.

china sentiment

Despite garnering international attention, the wild moves in China's major stock markets haven't fazed ordinary urban Chinese consumers, only 11 percent of whom identify themselves as owning equities. Instead, the loosening of credit restrictions and reforms to state-owned enterprises have preoccupied Chinese consumers, who are happy with the developments.

Fewer Chinese report spending more than 50 percent of their income on daily expenses, Westpac said in its report, while spending on leisure activities increased.

“Our cross-section of urban Chinese consumers seems oblivious to the tirade of negativity that surrounds China at the moment," MNI Indicators Chief Economist Philip Uglow said. "While China’s traditional industrial growth engine is slowing, the growing consumer and service sector should help to underpin growth in the months and years ahead.”

Meanwhile, China's slowing demand for imports in recent months has dragged global trade down and sent shivers of unease through financial markets around the world. Yet the measure remains only 1.7 percent below its long-term average, Westpac senior economist Matthew Hassan said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.