Slowing economy hits morale

China's slowing economy dented the confidence of Chinese households in May and people's willingness to buy property softened for the first time in four years, a survey showed yesterday.

The China Wealth Index, compiled by the Bank of Communications and Nielsen, settled at 127 in May. It was lower than 130 in March and 129 in January though a reading above 100 reflects optimism.

The component indices showed households' confidence in the economy shed 5 points to 126 last month, and their willingness to invest also slid from 117 in March to 114.

People were especially reluctant to buy homes because the component index shed 3 points to 99, below the positive sentiment level for the first time in the survey's four-year history.

"People's anticipation remains weak, especially in coastal areas where the pains of structural reform are growing," said Lian Ping, chief economist at BoCom.

April's data for industrial production, fixed-asset investment and retail sales all plunged to their lows. China's economy grew 7.4 percent from a year earlier in the first quarter, the slowest in 18 months.