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China Daily Website

China business optimism shows strong uptick in Q3

Updated: 2013-11-18 17:18
By Hu Yuanyuan ( chinadaily.com.cn)

China business optimism on economic prospects showed a significant uptick in the third quarter, the latest Grant Thornton International Business Report 2013 indicated on Monday.

As economic data showed recovery in the third quarter, China business confidence was boosted to 31 percent, rising by 27 percentage points from the second quarter.

Revenue expectation for the next 12 months also rose from 60 percent in the second quarter to 65 percent in the third quarter.

However, the survey also indicated that, affected by the downturn in business optimism in the second quarter, a number of indicators remain to be restored, including expectations on profitability (42 percent), selling price (27 percent) and exports (12 percent), which all suffered a further drop after falls in the second quarter.

Despite economic recovery and restored business confidence, business running costs are increasing, as is market competition.

IBR data revealed that 31 percent of businesses believe a shortage of skilled workers is the most important factor limiting business expansion.

 
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