Jan 25, 2022 - World

Chinese consumer confidence stabilizes

A man looking at a stock graph going up

Illustration: Aïda Amer/Axios

After falling sharply in late 2021 due to COVID outbreaks and real estate worries, Chinese consumer confidence stabilized in January, according to a new survey by Morning Consult.

Why it matters: "Economic disruptions in China could potentially spill over to present headwinds to the global economy," the report states.

Details: Consumer confidence in China tumbled throughout November and December, according to Morning Consult’s Index of Consumer Sentiment for China, as strict lockdowns hit numerous cities affected by new coronavirus outbreaks.

  • Uncertainty in the real estate sector also drew concerns among consumers, many of whom have parked their household wealth in apartments, as real estate giant Evergrande defaulted on payments on its massive debt.
  • Consumer confidence stopped falling and leveled off throughout January, though it hasn't recovered to the higher levels seen in summer 2021.

What to watch: Analysts have long sounded the alarm about China's overheated real estate sector, which may be headed for decline after decades of speculation pushed prices sky high.

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