Chinese business sentiment continues to gyrate this month, as companies struggle to weigh recent easing action from policy-makers with slowing growth and a clouded outlook

Chinese business sentiment continues to gyrate this month, as companies struggle to weigh recent easing action from policy-makers with slowing growth and a clouded outlook. 11

The MNI China Business Indicator fell 10.3 per cent this month, to 49.9 - just below the 50 threshold needed to indicate optimism. 11

Results have been particularly volatile recently, either reflecting uncertainty in China or problems with the survey. A month earlier it jumped 8.4 per cent, but before that it fell 8.3 per cent

MNI, a part of Deutsche B?rse Group, surveyed 200 companies listed on the Shanghai and Shenzhen stock exchanges. MNI

The forward looking New Orders component fell by 6.6 per cent, while the Production component fell 4.2 per cent

Philip Uglow, chief economist of MNI Indicators, said the increased volatility reflects a range of factors including an uncertain economic outlook: MNI

In spite of the instability in many areas though, business is finding some support in the easier credit environment while new orders and output remain elevated by historical standards. Still, the latest result confirms that the business backdrop is fragile and further stimulus is warranted, particularly given the renewed disinflationary tone struck in November's survey. “