Weak economy worries Chinese
By Wang Yanlin |
September 1, 2012, Saturday
|
Print Edition
Print Edition
CHINA'S households are showing less confidence in the country's economy but expressing renewed interest to buy property in the future, a survey by the Bank of Communications showed yesterday.
This could fuel an increase in house prices and force policymakers to launch even stricter property curbs, said Lian Ping, the bank's chief economist.
The China Wealth Climate Index, a gauge of sentiment among Chinese households, slipped to 120 points in August, down from 131 in May and 128 in March.
A reading above 100 signals positive sentiment.
"China's economic slowdown is faster than expected, and the supportive policies are less than expected," Lian said. "It dampens people's optimism which has been spotted in our previous two surveys, and there are few signs of an imminent recovery."
Lian said the sharp drop in the index showed less confidence among the surveyed households, which have an after-tax annual income of more than 50,000 yuan (US$6,024) and are a major force in consumption and investment.
But the component index of expectation to buy a home jumped to 125, 8 points more than the reading in May.
There are no new curbs expected on property and people show renewed interest in the sector, the report said.
China's economy grew 7.6 percent on an annual basis in the April-June quarter, the slowest in three years.
The government seemed to be reluctant in rolling out new policies last month to respond to the dismal data in July, and Lian said it caused people to show less confidence in China's future performance.
Today, the National Bureau of Statistics will release the Purchasing Managers' Index for August, a gauge of operating conditions among manufacturers. Economists estimate it would further dip to 50.1 from July's 50.2, indicating nearly negligible growth in the sector.
This could fuel an increase in house prices and force policymakers to launch even stricter property curbs, said Lian Ping, the bank's chief economist.
The China Wealth Climate Index, a gauge of sentiment among Chinese households, slipped to 120 points in August, down from 131 in May and 128 in March.
A reading above 100 signals positive sentiment.
"China's economic slowdown is faster than expected, and the supportive policies are less than expected," Lian said. "It dampens people's optimism which has been spotted in our previous two surveys, and there are few signs of an imminent recovery."
Lian said the sharp drop in the index showed less confidence among the surveyed households, which have an after-tax annual income of more than 50,000 yuan (US$6,024) and are a major force in consumption and investment.
But the component index of expectation to buy a home jumped to 125, 8 points more than the reading in May.
There are no new curbs expected on property and people show renewed interest in the sector, the report said.
China's economy grew 7.6 percent on an annual basis in the April-June quarter, the slowest in three years.
The government seemed to be reluctant in rolling out new policies last month to respond to the dismal data in July, and Lian said it caused people to show less confidence in China's future performance.
Today, the National Bureau of Statistics will release the Purchasing Managers' Index for August, a gauge of operating conditions among manufacturers. Economists estimate it would further dip to 50.1 from July's 50.2, indicating nearly negligible growth in the sector.
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