Chinese business sentiment falls in August, MNI survey reveals

Chinese business sentiment fell in August as decline in demand and less favourable credit conditions weighed, according to a survey on Tuesday.

The MNI China Business Sentiment Indicator, a gauge of current business sentiment, fell 2.2% to 54.3 in August from a nine-month high of 55.5 in July. The indicator remained above the 50 break-even level for the fifth consecutive month but marked the first decrease in three months.

The survey also showed that companies’ expectations for the future dropped. The Future Expectations Indicator edged down 6.7% to 55.8 in August, the lowest out-turn since May 2016.