Consumer confidence hits lowest level since 2020 in China

Chinese consumer confidence hit its lowest levels since the beginning of 2020 in November. The data points to the economic pressure facing Beijing as it begins to lift severe Covid Zero restrictions.

According to a survey by the US firm Morning Consult, consumers last month gave answers almost as pessimistic about their current and future financial situation as they did at the beginning of the 2020 pandemic year. With the relaxation of epidemic measures, it is expected for consumer confidence to recover.

Confidence indices in the country also trended lower this year as the country grappled with the Covid outbreaks and the crisis in the real estate market. These data rose slightly in October before falling again in November as coronavirus cases spiked and led to lockdowns in many places.

WILL THE RESTRICTIONS BE LOOSENED?

In the spring months in China, the impact of Covid-19 restrictions on the economy of cities with large populations was clearly felt, especially Shanghai, the country’s largest city and home to critical industries and lines of trade.

Economic performance, measured in many fields, fell to the lowest levels since the first months of the Covid-19 epidemic, and mounting economic losses and social discontent led the government to review the measures. The Beijing administration announced that some Kovid-19 measures were relaxed.