Consumer hopes flat as gloom worsens

Chinese consumer sentiment was nearly flat in November from a month ago as pessimism about business conditions grew, a latest study showed.

The Westpac MNI China Consumer Sentiment Indicator was 111, compared with 110.9 in October, after falling for three straight months, the Australian bank and the Germany's Market News International said in a joint report yesterday.

Consumers' expectations on current business conditions have fallen to the lowest since April 2009.

"Confidence remains at a historically low level and it is far too early to conclude that the declining trend has run its course," said Philip Uglow, chief economist of MNI Indicators.

But sentiment in the job market improved for the first time in six months, and the employment outlook indicator recovered to the highest level in four months.

There were also signs that the housing sector has stabilized as buying sentiment improved for the first time in seven months while an indicator of housing price expectations has risen for the first time since July.

"The initial signs of consolidation shown in the survey are consistent with our view that domestic demand has bottomed out in the third quarter," said Huw McKay, Westpac's senior international economist.