China’s Business, Consumer Confidence Weakening
The International Herald Tribune reports that slow growth, lowered estimates of home purchases and export orders is leading to a weakened confidence in the Chinese economy.
China’s economy is slowing according to a survey released by the government Tuesday. The survey, which asked 5,000 businesspeople, 2,900 bank managers, and 20,000 Chinese, found that 40 percent of respondents expect China’s inflation rate to increase.
China’s growth is expected to fall to 9 percent, from 11.9 percent last year. That is still the highest percent of growth for any major economy; however, the Chinese government is trying to satisfy their population’s desire for steadily increasing living standards.
The survey found:
– 24.5 percent thought their incomes would increase in the next three months
– 13.3 percent planned to purchase a home, the lowest level since 1999