Five-year low for confidence of China firms
CHINESE business confidence slumped to the lowest recorded level in half a decade this month, according to a major survey.
MNI’s China business indicator stands at only 50.2 for February, indicating that only a very narrow majority of executives in the country’s listed firms are optimistic about the economic climate. Any figure below 50 would suggest a majority have moved to having a pessimistic view.
The outlook for business conditions in the next quarter is at an even lower level historically: at 50.6, optimism for the future is down to at least a seven-year low, since the polling began in 2007.
“The Chinese authorities face the unenviable task of trying to achieve a more sustainable growth path, while ensuring that they don’t pull the rug from underneath the economy,” said chief economist Philip Uglow.
Chinese growth hit 7.6 per cent in 2013, very slightly above the government’s target for a 7.5 per cent expansion. The economy regularly grew at a much faster pace before the financial crisis, and has moderated since.