China third quarter business confidence index increases

Survey shows 19.7% of bankers believed monetary policy will remain relatively loose

Image Credit: Reuters
Employees work at a Dongfeng Peugeot Citroen factory before it starts up production in Chengdu, Sichuan province, China.
Gulf News

Beijing: Business confidence among entrepreneurs in China has picked up for the second quarter in a row in 2016, according to surveys by the People’s Bank of China published on Sunday.

The entrepreneurs’ confidence index rose to 51.2 per cent in the third quarter, 2.2 percentage points higher than in the second quarter, a central bank survey showed.

China’s factory output and retail sales grew faster than expected in August as a strong housing market and a government infrastructure spending spree underpinned growth in the world’s second-largest economy.

A separate central bank survey published on Sunday showed that a bankers’ confidence index rose to 46.5 per cent in the third quarter, 2.8 percentage points higher than in April-June.

The survey showed 19.7 per cent of bankers believed monetary policy would be relatively loose in the fourth quarter of this year.

The central bank has cut interest rates six times since November 2014 and reduced the amount of cash that banks must set aside as reserves.

Another survey by the central bank showed that 53.7 per cent of households rated housing prices as “unacceptably high”, up 0.3 percentage points from the second quarter.

The proportion of residents prepared to buy property in the next three months rose to 16.3 per cent in the third quarter, 1.3 percentage points higher than the previous quarter, the survey showed.