Despite a booming stock market and signs of stabilisation in the housing market Chinese consumers remain gloomy.
That’s according to the latest Westpac-MNI consumer sentiment index for April, with the index sliding 3.1% 111.1.
The reading, down 5.3% from the same month a year earlier, sits 8.7% below the series long-run average.
All five index components deteriorated during the month with current and expected family finances – indicators that improved in March following a 0.25% rate cut from the PBoC – falling sharply.
Discussing the outcome Westpac’s chief international economist Huw Mackay noted “the absolute level of the CSI indicates that Chinese consumers are still anxious about their personal financial wellbeing and the economy more broadly”.
That suggests that an upturn in economic indicators — rather than the stock market — will be required to boost sentiment moving forward.