China's household confidence weakens again

China’s household confidence weakened again after people suffered a drop in income and received less returns from investment, a survey showed today.

The China Wealth Index, compiled every three months by Bank of Communications and research firm Nielsen, fell to 137 in December from 139 in October and a two-year high of 140 in July.

A reading above 100 reflects optimism among 1,885 households interviewed.

The index measuring people’s income dropped by 1 point to 150, with a notable decrease in people’s spending on traveling and entertainment during the period.

“China’s economy slowed a bit in the third quarter, but remained largely stable,” said Lian Ping, chief economist of BoCom. 

China’s gross domestic product grew 6.8 percent in the July-September period, easing from 6.9 percent in the previous two quarters. 

The sub-index measuring people’s willingness to invest in real estate lost 4 points to 109, the second retreat after it rose in July’s survey, after China extended measures to dampen property speculation to more second-tier cities.

“Stricter measures to calm the housing market affected people’s confidence to some extent,” Lian said.

The employment index remained stable in the survey’s history of seven years at 130.