Company optimism toward future business improves: survey

Chinese enterprises are increasingly optimistic toward business revenues and new orders in 2015, according to a survey released on Sunday.

Financial information service provider Markit found the net balance of rate (percent of polled companies expecting an increase in business activity in the next 12 months minus the percent expecting a decline) grew to 30 percent in February from 26 percent in October.

The latest reading was also above both the BRIC (Brazil, Russia, India and China) and global averages, which stood at 28 percent and 27 percent, respectively.

Both manufacturing and service sectors shared a brighter business outlook, according to the Markit survey.

A net balance of 28 percent of goods producers anticipated an expansion of output over the coming year, up from 25 percent in Autumn. Meanwhile, a net balance of 32 percent of service providers forecast business activity to increase in the next 12 months, the highest level since mid-2012.

Markit said stronger client demand, lower raw material costs and recent cuts in interest rates and bank reserve requirements were likely to support growth.

Threats to expansion centered on changes to state policies, rising staff costs and exchange rate fluctuations. Enditem