China’s consumer confidence remains stable despite slowing growth and housing market uncertainty.
The ANZ-Roy Morgan China Consumer Confidence Index records consumer confidence in the world’s second largest economy remained stable at 152.5 in May compared with 152.6 in April.
It says sentiment in Shanghai and Guangzhou remained upbeat, while in Beijing it continued to trend lower. In China’s small and medium cities, consumer confidence generally saw an improvement, it says.
“The May consumer confidence has shown signs of stabilisation, which could foretell a possible pick up in China’s retail sales,” says ANZ Greater China chief economist Li-Gang Liu.
“However, a further decline in inflation expectation suggests that domestic demand remains lukewarm. This suggests that the retail sales figure in May will not see a significant boost, either,” Liu adds.
