First Increase of the CEP Indicator Since Midyear

China Economic Panel

China Economic Panel (CEP) of the Centre for European Economic Research (ZEW) and Fudan University (Shanghai)

CEP Indicator November.

Economic expectations for China have improved slightly in comparison to the previous month. The CEP Indicator, which reflects expectations of international financial experts regarding China's macroeconomic development over the next twelve months, has increased from 0.0 to 9.8 points in the current survey period (November 13 to 28, 2014).

The indicator is now only slightly below its long-term average of 13.6 points (see graph).The first improvement of economic expectations in the past five months likely results from the unanticipated reduction of the prime lending rate by the People’s Bank of China, a decision that was taken during the survey period.

Financial analysts’ assessment of the current economic situation in China decreased slightly by 3.5 points and now stands at 1.4 points. This result corresponds to other economic indicators pointing towards a currently sluggish domestic industrial production.

For further information please contact

Dr. Oliver Lerbs, phone 0621 / 1235-147, E-Mail lerbs@zew.de

Prof. Dr. Michael Schröder, phone 0621 / 1235-140, E-Mail schroeder@zew.de