Business confidence in China rebounds from 8-year low

Business confidence in China has rebounded strongly in the second quarter, the South China Morning Post reported, citing a National Bureau of Statistics survey. The resurgence is seen largely as the product of Beijing’s US$586 billion stimulus package finally going to work. In the period from April to June, the corporate climate index increased by 10.3 points to 115.9 from the eight-year low of 105.6 for January through March. Furthermore, the entrepreneur’s confidence index increased by 9.1 points on the previous quarter to 110.2. J.P. Morgan Chief China Economist Frank Gong said, "The economy is doing better than what people had thought. Household spending on property, consumer discretionaries in general was better, and inventory reduction since late last year laid the groundwork for inventory addition."