According to China’s central bank’s survey reports released on Tuesday, December 27, the country’s confidence in the job market, incomes prospect, and real estate market plunged to new lows as the economic downturn worsened this year.
China’s Employment Sentiment Index from the People’s Bank of China fell to 33.1 in the last quarter of 2022, down from the previous quarter. Reading below 50.0 indicates contractions. The index is based on a survey of households’ outlook for jobs.
The survey showed that nearly 50% of residents believe that “the situation is grim and it is difficult to find employment.”
The Income Confidence Index, measuring expectations for income in the next three months, also declined to 44.4, reaching a record low since 2001, with over 60% of respondents saying they would instead save more than consume.
The report also reflects that confidence in the housing market kept deteriorating in the fourth quarter, despite the regime’s bailout effort to rescue the sector.
Only 14% of respondents expected home prices to increase in the next quarter, another low since 2010. 18.5% of respondents expected housing prices to decline, the highest percentage since 2012.
The surveys highlighted the economic downturn, real estate crisis, COVID outbreak, and controversial measures that have damaged Chinese households this year.
China’s central bank’s report findings are based on a survey of 20,000 depositors across China, taken every quarter.
Reuters reported that a poll by World Economics released on December 19 showed China’s business confidence sank to the lowest level in nearly ten years. The survey reflects the negative impact of surging COVID infections on business activity, which might lead to a possible recession next year.