Westpac-MNI China November Consumer Sentiment up 3% on the month
Little response from the AUD, which is crawling along near the top of the day's range.
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Comments on the release via WPAC:
- The Index is in line with the average recorded over the last 18mths.
- All five components rose in November
- The employment indicator posted a robust 5.9%m/m gain but was still down 4.7%y/y
- The picture around jobs is consistent with continued weakness in the labour-intensive export sector as well as the downward pressure operating on a range of blue collar domestic activities
- Household inflation expectations lifted after a sharp fall last month but are still down 3.6%y/y.
- ... real estate ... investor demand continues to soften but owner occupier attitudes may be starting to improve
Overall, the November lift in sentiment is a welcome development. Although we viewed last month's sharp drop as mainly an overdue correction bringing Chinese consumer confidence more in line with the softer tone coming from other economic data, there was a risk that sentiment could have gone on to register a deeper shock. A timely easing in policy appears to have helped spur this month's rally. Despite this, Chinese consumers are clearly still anxious about the outlook for the economy and jobs. Sentiment around housing remains a notable positive but even here we are wary of recent slippage and what this may mean for a recovery that has yet to show convincing signs of broadening and strengthening.
