Business confidence higher in 1st quarter
By Wang Yanlin |
April 10, 2010, Saturday
|
Print Edition
Print Edition
CHINA'S success in countering the global economic meltdown continued to buoy the confidence of the country's entrepreneurs in the first quarter of this year, the National Bureau of Statistics said yesterday.
The Business Confidence Index in China gained 7.8 points from the previous quarter, to 135.5 in the first three months, the highest level since the second quarter of 2008.
Meanwhile, the Business Climate Index edged up 2.3 points from a quarter earlier, to 132.9 through March.
An index reading above 100 indicates optimism or expansion.
"Business confidence has been growing steadily, thanks to China's performance in fighting the global financial crisis," the bureau said in a statement.
Li Maoyu, an analyst at the Changjiang Securities Co, credited the government's efforts to spur economic growth for the boost in confidence.
Policies trusted
"Although there are still uncertainties ahead about any subtle changes in policy stance, business people basically trust the government's decision and its capability to steer the economy," Li said.
China said it will stick to a relatively easy monetary policy and a proactive fiscal policy this year to secure a solid recovery. But with inflation a consistent concern, some economists called on policy makers to raise interest rates at least once in the second quarter.
China will announce the key economic data for March next week. Morgan Stanley forecast that gross domestic product in the first quarter will advance 12 percent year on year, improving on the increase of 10.7 percent in the fourth quarter of last year.
The Consumer Price Index, the main gauge of inflation, may grow at a slower pace but could still show an expansion between 2.3 and 2.6 percent in March -- not far from the government's target of 3 percent for the whole year.
Rate decision
The People's Bank of China, the central bank, said last month it needed more time to decide on an interest rate increase, making delicate efforts to boost the economy without triggering inflation.
Within the Business Confidence Index, entrepreneurs in information technology and software sector scored the highest, at 152.8. The index of manufacturers settled at 133.7, while property developers' index showed a slight loss from the previous quarter, at 133.1.
Foreign investors kept confidence in their Chinese investments despite Internet giant Google's exit from the Chinese mainland last month. The confidence index among foreign investors rose to 143.2, higher than Chinese private business owners (127.7) and investors from Hong Kong, Macau and Taiwan (132.7).
The Business Confidence Index in China gained 7.8 points from the previous quarter, to 135.5 in the first three months, the highest level since the second quarter of 2008.
Meanwhile, the Business Climate Index edged up 2.3 points from a quarter earlier, to 132.9 through March.
An index reading above 100 indicates optimism or expansion.
"Business confidence has been growing steadily, thanks to China's performance in fighting the global financial crisis," the bureau said in a statement.
Li Maoyu, an analyst at the Changjiang Securities Co, credited the government's efforts to spur economic growth for the boost in confidence.
Policies trusted
"Although there are still uncertainties ahead about any subtle changes in policy stance, business people basically trust the government's decision and its capability to steer the economy," Li said.
China said it will stick to a relatively easy monetary policy and a proactive fiscal policy this year to secure a solid recovery. But with inflation a consistent concern, some economists called on policy makers to raise interest rates at least once in the second quarter.
China will announce the key economic data for March next week. Morgan Stanley forecast that gross domestic product in the first quarter will advance 12 percent year on year, improving on the increase of 10.7 percent in the fourth quarter of last year.
The Consumer Price Index, the main gauge of inflation, may grow at a slower pace but could still show an expansion between 2.3 and 2.6 percent in March -- not far from the government's target of 3 percent for the whole year.
Rate decision
The People's Bank of China, the central bank, said last month it needed more time to decide on an interest rate increase, making delicate efforts to boost the economy without triggering inflation.
Within the Business Confidence Index, entrepreneurs in information technology and software sector scored the highest, at 152.8. The index of manufacturers settled at 133.7, while property developers' index showed a slight loss from the previous quarter, at 133.1.
Foreign investors kept confidence in their Chinese investments despite Internet giant Google's exit from the Chinese mainland last month. The confidence index among foreign investors rose to 143.2, higher than Chinese private business owners (127.7) and investors from Hong Kong, Macau and Taiwan (132.7).
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