Saving Sentiment Declines - PBOC Survey

Sentiment among China's savers decreased in Q1, with 58% noting they had saved more – down 3.8pp over Q4 2022, according to the Peoples’ Bank of China's Household Finance Survey. The results showed consumption was up, with 23.2% of respondents recording increased spending – a 0.5pp increase. According to Yicai, the results show Covid-19's impact on savings and consumption is not over. The employment perception index was also up 6.8pp to 39.9%, with 13.2% of residents reporting a positive job market, 45.6% marking it average and 41.2% of residents saying it was bad. For Q2 2023 house prices, 18.5% of survey participants expect an increase, 54.1% predict no change, while 14.4% said decrease and 13.1% were uncertain.