2024-12-17 09:35:15 :
A key gauge of CEO confidence in China showed pessimism for the first time since the pandemic began, despite a raft of stimulus measures.
A survey by the Conference Board, a US-based think tank, showed that the confidence index of country heads of most US and European companies fell to 49 points from 56 points in the previous six months. A reading above 50 indicates optimism, while a reading below 50 indicates pessimism.
The survey was conducted between September 30 and October 28, when Beijing announced interest rate cuts and other measures to support growth ahead of the election of Donald Trump, who threatened to Later, tariffs were imposed on Chinese goods.
The survey highlights lingering concerns about China’s economy this year. On Monday, new data showed retail sales growth unexpectedly weakened in November, the latest reminder of weakness in the consumer sector. Chinese policymakers recently made boosting consumption a top economic priority through 2025, the second time in at least a decade that they have done so.
On Tuesday, China began allowing transiting foreign tourists to enter the country without a visa for up to 10 days, further relaxing travel policies with an eye on supporting economic activity.
CEOs in the survey cited an economic slowdown as the biggest risk to their businesses and said their profits were being squeezed as customers became more price-sensitive and sought deep discounts or delayed purchases.
More than half of the executives said local competitors have been more nimble in responding to these market changes, often offering similar or superior products at significantly lower prices.
“CEOs are more optimistic about the long term, but there is no doubt that multinationals will have to make tough decisions to compete in the current environment,” Alfredo Montu, director of The Conference Board’s China Center Alfredo Montufar-Helu said.
This article was generated from automated news agency feeds without modifications to the text.
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