Last month, Chinese consumers were just as worried about their financial future and current conditions as they were when the pandemic broke out in 2020.
This year, the sentiment index was trending downward as the country battled with Covid outbreaks. (Photo: Bloomberg)
According to a survey, Chinese consumer sentiment dropped in November and is now back at the lows of early 2020. This underscores the economic pressure Beijing faces while it reverses its most severe Covid Zero curbs.
According to Morning Consult, consumers were just as worried about their financial futures and current conditions last month as they were in early 2020 when the pandemic was erupting.
As the country battled Covid outbreaks, and a slump in property prices, the sentiment index was trending downward. The index rose slightly in October, but then dropped again in November due to an increase in coronavirus infections. This led to lockdowns at many locations.
Morning Consult reports that the threat perception of Covid-19 by Chinese citizens has increased significantly this year. Nearly 70% of Chinese people now consider Covid-19 a major threat to their country, up from 51.7% in January.
These data show how stressed the economy was when Beijing policymakers decided to relax Covid Zero.
The consumer sentiment Poll had been increasing from late 2020 to 2021 when Covid Zero succeeded at keeping it. coronavirus The majority of cases are not severe enough to restrict the ability to use them.
The policy was put under greater pressure this year, as the more contagious omicron variant became difficult to eradicate even with stricter restrictions. This has been met with increasing resistance from the Chinese population.
According to Jesse Wheeler, analyst at Morning Consult, the significant drop in sentiment this year was due to “lockdowns” and a slumping market for property.
He said, “An end of Covid Zero policies will eventually spur growth. However, over the short term, it will pose serious risks for the Chinese and global economy.”
Morning Consult polls approximately 1,000 Chinese adults monthly to assess their willingness to purchase large quantities of goods and their economic outlook. Scores above 100 indicate more positive responses and scores below 100 indicate more negative responses.