Westpac releases China Consumer Sentiment Survey

Westpac Institutional Bank (Westpac) has partnered with MNI Indicators to co-produce an independent monthly report on the Chinese consumer: The Westpac MNI China Consumer Sentiment Survey.

The key headline indicator from the survey is the Westpac MNI China Consumer Sentiment Indicator (Westpac MNI China CSI). MNI Indicators is part of MNI, a subsidiary of one of the world’s largest exchange organisations, Deutsche Börse AG.

To be launched on Wednesday, 28 May 2014, the Westpac MNI China CSI aims to become the primary reference point for key decision makers around the world seeking to better understand the current and future state of the Chinese economy, with special reference to the household sector.

Formally known as the MNI China Consumer Indicator, it has been calculated since 2007 and is disseminated by MNI Indicators on a subscription basis. Following the partnership with Westpac, the Westpac MNI China CSI will be available on a monthly basis through Westpac’s global research portal WIB IQ or by subscription from MNI Indicators. Westpac’s expert interpretation and analysis will significantly enhance global access to this information given the bank’s authority in tracking consumer sentiment in Australia for over 40 years and in-depth analysis of the Chinese economy.

The Westpac MNI China CSI also sits alongside MNI Indicators’ range of business and consumer indicators in China, India, Russia and the United States.

Westpac’s Senior International Economist Huw McKay said the Chinese household sector is already an important factor in the determination of global growth, and that importance will increase over time.

“The Westpac MNI China CSI will take the pulse of China’s consumer mega market on a monthly basis thereby gauging one of the most critical rhythms of the global economy in a timely fashion.  This survey will complement the official data, with an easy to interpret monthly report underpinned by a pre-existing and well understood research methodology,” McKay said.

Chief Economist of MNI Indicators Philip Uglow said, “We’re delighted that our co-operation with Westpac means that this deep mine of data on the Chinese consumer will now reach an even larger audience.”

“As well as key top level data to show how the Chinese economy is performing, our database of more than a hundred thousand data points over the past seven years allows professionals to analyse all aspects of Chinese households by major city, region, income, gender and age. It provides unique insights into the minds of Chinese consumers on a range of topics, including personal finances, spending, housing, autos, equity markets and employment,” Uglow added.

Westpac’s Head of Greater China Andrew Whitford said, “While there are a number of closely watched business surveys in China, this will be the only independent monthly insight into the psyche of the Chinese household sector.”

“Westpac’s expertise in this field makes us well placed to cover consumer sentiment in China and delivers on our strategy of connecting our global customers to the flow of trade, capital, investment and people through the China Corridor,” Whitford said.

The Westpac MNI China CSI is based on the methodology developed by the University of Michigan’s U.S. Consumer Sentiment Index, which has been in use since 1946. The Westpac-Melbourne Institute Australian Consumer Sentiment Survey, founded in 1973, was also modelled on the University of Michigan survey.

The use of a pre-existing and highly regarded framework for the survey should give confidence to users that the data that they have in their hands is a robust tool for both tracking the state of the Chinese household economy and the facilitation of international comparisons. The sample size for the Westpac MNI China Consumer Sentiment Survey is larger relative to the sample population that is used in the U.S., which leads to a smaller sampling error (3.5% versus 5%).

The Westpac MNI China Consumer Sentiment Survey will be launched on Wednesday, 28 May 2014. After the inaugural release, the Survey findings will be published on the final Wednesday of each calendar month at 09:45 Beijing time.

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