**Chinese consumer sentiment is beginning to show signs of improvement, according to recent surveys, indicating a potential recovery in consumer spending in the world’s second-largest economy.**
**Key points:**
* The University of Michigan’s Consumer Sentiment Index for China rose to 86.4 in October 2023, up from 84.3 in September 2023.
* The index has now risen for three consecutive months, indicating a gradual improvement in consumer confidence.
* The improvement in consumer sentiment is likely due to a number of factors, including the easing of COVID-19 restrictions, government stimulus measures, and rising incomes.
* However, consumer sentiment remains below pre-pandemic levels, indicating that there is still room for improvement.
**Analysis:**
The improvement in consumer sentiment is a positive sign for the Chinese economy. Consumer spending accounts for about 60% of China’s GDP, so a recovery in consumer spending would provide a significant boost to the economy.
There are a number of factors that are likely contributing to the improvement in consumer sentiment. First, the Chinese government has eased COVID-19 restrictions in recent months, which has allowed businesses to reopen and consumers to resume normal activities.
Second, the government has implemented a number of stimulus measures to support the economy, including tax cuts, infrastructure spending, and cash handouts to consumers.
Third, incomes are rising in China, which is giving consumers more money to spend.
However, consumer sentiment remains below pre-pandemic levels, indicating that there is still room for improvement. There are a number of challenges that the Chinese economy still faces, including the ongoing trade war with the United States, rising inflation, and a slowing property market.
Despite these challenges, the improvement in consumer sentiment is a positive sign for the Chinese economy. If consumer spending continues to recover, it will provide a significant boost to the economy and help to offset some of the challenges that it faces.
**Source:**
[China’s consumer sentiment starting to improve, surveys show](https://us.fashionnetwork.com/news/China-s-consumer-sentiment-starting-to-improve-surveys-show,1546644.html).
