Business confidence in China close to record low

India Infoline News Service | Mumbai | July 17, 2017 16:17 IST

Business confidence in China near to record low.

Map and flag of China
The latest IHS Markit Business Outlook survey signals that business sentiment in China for the year ahead has weakened in June. 
  
A net balance of +18% of Chinese companies forecast greater output over the next 12 months. However, this is down from +26% in February, and below both BRIC (+24%) and global (+31%) averages. Confidence is softer across both the manufacturing (+15%) and service (+21%) sectors, with the former registering the joint-lowest level of optimism in the series history.

Consequently, projections for business revenues (+17%) and profits (+10%) have weakened and are among the lowest seen in the series history.
  
However, June’s net balance of +6% is a step down from +8% at the start of the year and much weaker than the global average (+17%). Split by sector, the pace of payroll expansion at services companies (+9%) is set to be faster than seen at manufacturers (+3%)
  
June survey data also point to a further rise in capital expenditure across China over the next year. A net balance of +13% of firms anticipate higher spending on capex, which is down from +21% in February.

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