Consumer sentiment in China plunged in October, as the outlook for business conditions plummeted and household finances weakened, a survey showed Wednesday.
The Westpac MNI China Consumer Sentiment Indicator fell to 109.7 in October from 118.2 in September, marking the lowest reading since the survey began in 2007.
Business outlook over the coming year was the hardest hit, with Business Conditions in One Year registering a 10.3 percent decline, while the Business Conditions in Five Years component fell 8.2 percent. Current and expected measures for household finances were also weaker, down 5.3 percent and 7.3 percent respectively.
The survey is taken from consumers across 30 Chinese cities ranging from tier 1 to tier 3. Respondents said that they were planning on reducing their shopping and entertainment activities in the near term.
"This result openly questions the resilience of the Chinese consumer to the discouraging state of the real economy," said Huw McKay, senior international economist at Westpac.