Chinese consumer sentiment improved this month, putting it at its highest point since last July according to a monthly survey.
The Westpac MNI China Consumer Sentiment Indicator increased 2.4 per cent month-on-month in March to 114.7, from a reading of 112 in February.
The Aussie bank argues the uptick is a "tentative sign" that consumers have registered easing measures undertaken by the People's Bank of China, as well as benefiting from lower energy prices due to the global oil price rout. These appear to have outweighed any impact of lowering the annual growth target, they said.
"Household finances, which had been under pressure for much of 2014, look to have put the worst behind them," they said in a statement.
Westpac economist Huw McKay added:“Chinese consumers have now responded positively to both of the interest rate cuts delivered so far in the current cycle. That underlines the fact that policy settings were overly tight in 2014, and that the progressive unwinding of those settings will benefit the economy this year and next. While the structural challenges confronting the economy are genuine, the survey argues very strongly that policy remains a potent cyclical force in the minds of consumers.” (www.chinainout.com)
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