China Consumer Sentiment for December at 116.6, bouncing from the prior reading
- prior was 114.9, its lowest since August 2016
Commentary from Westpac (i.e. Westpac Global Economics) (in brief):
- up 2.5% on a year ago - still below its long run average of 120
- Four of the five components rose in December
- The employment indicator rose 1.1% but remains at a weak level overall after softening in the second half of the year. The index is down slightly on this time last year.
- The main theme for the Chinese consumer in 2016 has been one of gradual improvement. While there have been several setbacks along the way and progress has at times been disappointing the picture at year end is of a more comfortable consumer. It's been a similar story for the wider economy, with gradual gains but no 'break out' moves associated with a lift to outright strength. Looking to the year ahead, public sector activity is expected to support growth ahead of November's all-important 19th National Congress. With private sector investment still subdued and questionmarks around the export environment, the Chinese consumer is likely to again be a key swing factor for the wider economy.
