Chinese Consumer Confidence is Restoring

China Consumer Sentiment Indicator increased 2.4 per cent in March to 114.7, from a reading of 112 in February according to a monthly survey by Westpac MNI in Australia.

Consumer Sentiment Indicator is a “tentative sign” that consumers have registered easing measures undertaken by the People’s Bank of China, which appears to have outweighed any impact of lowering the annual growth target.

“Household finances, which had been under pressure for much of 2014, look to have put the worst behind them,” they said.

“Chinese consumers have now responded positively that underlines the fact that policy settings were overly tight in 2014. ” Westpac economist Huw McKay added.

They also believed 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 the policy remains a cyclical potent force in the minds of consumers.”economic experts are stressed.