Latest survey results

The key findings from the 2024 Q3 Business Sentiment Index (BSI) report are as follows:

In the third quarter of 2024, the Business Sentiment Index (BSI) stood at 54, slightly lower than the previous quarter, but with stable overall operating conditions. The operating conditions diffusion index stayed level (65), at the higher end of expectations. The operating prospects diffusion index rose to (51), just above the threshold (50) between growth and recession. The investment possibilities diffusions index have dampened this quarter (46) compared with last, with uncertainty the main drag on economic recovery. This quarter, the production diffusion index (48) and the finished product inventory diffusion index (48) rebounded. Increased production is this quarter’s main trend. Stable investment sentiment shows that companies are optimistic about long-term investment opportunities.

This quarter, the cost (57) and price (51) diffusion indices both fell, as companies cut costs to push production, providing a favorable environment for demand and growth. Under the influence of countercyclical monetary policy adjustments, new corporate loans (7.2%) fell from the previous quarter, while financial institutions’ willingness to lend (98) continued to grow. Industry generally feels the macroeconomic chill (Figure 10). Regularly injecting stability into the market, making efforts to boost consumer confidence and encourage producers are all ways to help get economic recovery back on track.

The full survey can be downloaded via the links below (Chinese version available here).

For more information, or to arrange an interview with these two professors, please email Julie Tian xftian@ckgsb.edu.cn.