China economy picks up as consumer sentiment rises to five-month high

Consumer sentiment in China has risen to its highest level in almost five months, a new survey showed on Tuesday, further evidence of signs of a pickup in the world's second largest economy.

The MNI China Consumer Sentiment Indicator rose to 95.5 in November from 92.3 in October, marking a second straight month of gains, according to the report issued by MNI, a unit of Deutsche Boerse Group.

The group said the gains were broad-based, including current personal finances, the economic outlook, and the willingness to purchase household durable goods.

Only the outlook for personal finances declined during the month, with comments from some higher income respondents complaining about the worsening economic environment.

“Salary increases don’t match price increases. Salaries have doubled but CPI (consumer price index) is up fourfold. I am not thinking about buying a car,” one respondent told MNI, giving his name only as Zhang.

Both current and future indicators improved in November. The current indicator rose to 98.7 from 93.6 the previous month, while expectations rose for the third consecutive month, to 93.7 from 91.6.

Consumers’ willingness to buy large household items rose in November to its highest since May 2011, after dropping each of the previous three months. Moreover, car purchase sentiment rose again in November, with morale improving among so-called middle-income respondents.