Coronavirus: small business sentiment sinks to all-time low as outbreak knocks China’s economy, survey shows
- Confidence among small and medium-sized firms in China slipped to an all-time low in February, a new survey shows
- Results offer fresh evidence that economic conditions on the ground are much bleaker than the official version painted by Beijing
Business sentiment among small and medium-sized firms in China plunged to an all-time low in February as the novel coronavirus struck a heavy blow to the world’s second largest economy, a private survey has shown, reflecting challenges facing Beijing if it wants to keep growth on track.
February’s business conditions index, compiled by the Cheung Kong Graduate School of Business (CKGSB) in Beijing, tumbled to 37.3 from 56.2 in January, as the effects of the virus rippled through China’s economy. The further a result below 50, the more pessimistic respondents are.
But the index, known as CKGSB BCI, offers fresh evidence that conditions on the ground are much bleaker than the official version painted by Beijing.
We were psychologically prepared for poor results to this month’s CKGSB BCI, but the actual figures are worse than we had imagined
“We were psychologically prepared for poor results to this month’s CKGSB BCI, but the actual figures are worse than we had imagined,” professor Li Wei, who led the survey, said in a statement on Wednesday. “To save the economy, there is an urgent need to improve China’s business climate.”
The survey spoke with 300 senior executives in CKGSB alumni firms and the results indicate that “Chinese industry as a whole will be experiencing tougher conditions than [the] sample”.