Morgan Stanley says consumer confidence in China continues to gradually slide lower

Morgan Stanley AlphaWise Consumer Pulse Survey in late September, with 2,000 consumer respondents.

In summary:

• 49% of consumers expect the Chinese economy to improve in the next six months, down from 55% in June
• 13% to get worse, +1%
• 38% said they expect the economy to stay the same, +5%

Household spending intentions:

• 25% of consumers expect to spend more in the next quarter, -3% from june
• 10% expect to spend less, +2%

Morgan Staley call for better stimulus:

• “Our China economists believe the weakening consumer sentiment points to a need for further consumption stimulus to help alleviate the deflation spiral”

Yellen was on the same path on Tuesday:

• Yellen says China stimulus efforts fail to address 2 key areas of shaky Chinese economy