China's consumer sentiment shows tentative improvement

Mainland consumer sentiment stabilised this month, although still hovering at record-low levels, as more pessimistic views on business conditions were offset by slight improvements in confidence about jobs and the property markets.

The Westpac MNI China Consumer Sentiment Indicator edged up to 111 from 110.9 last month. The gauge has declined 8.8 per cent since the start of the year and has recently stayed close to the record low of 110.8 seen in September 2011.

The current "business conditions" indicator is down to its lowest since April 2009.

"House buying sentiment" rose for the first time in seven months, while "house price expectations" also showed its first gain since July.

Sentiment in the job market improved, for the first time in six months, with the "employment outlook indicator" recovering to hit a four-month high.

MNI Indicators chief economist Philip Uglow welcomed the stabilisation in consumer sentiment after three consecutive months of decline, but added: "Confidence remains at a historically low level and it is far too early to conclude that the trend decline has run its course."