PBC reveals business research findings
by Richard Kilner
Story link: PBC reveals business research findings
The People’s Bank of China (PBC) commissioned a Business Survey in the second quarter of 2008 which had 5,530 respondents.
The research revealed that banks were feeling the affects of a tighter monetary policy, which was resulting in a falling bank-lending index.
It is the fifth consecutive quarter which has seen the index decline to its current level of -26%, compared to its high point of -18.9% in the first quarter of last year.
The present index is the lowest it has been since 2005, and is reflected in the survey which had 27% of those asked considering current conditions for lending to be relatively tight, with 36% considering the lending interest rate to be relatively high, the highest proportions for three and 11 years respectively.
Another finding of the survey was that supply of energy, power and raw materials had improved somewhat recently, but was still down on the corresponding period last year.
As with many other parts of the world, inflationary pressures continue to mount.
Almost half, 44.5%, believe that there will be a surge in prices of production materials, an increase of over 13% on the same time last year.
Investment in fixed assets stayed high, and there remains some enthusiasm for investment in parts of heavy industry.
The survey shows that the businesses have the highest fixed asset investment index for Q2 since 1994.
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