Entrepreneur Confidence by Industry

Entrepreneur confidence is up in some important industries.

Business development is vital to Chinese survival if they wish to move beyond an import/export manufacturing power. To that end confidence of entrepreneurs to start and grow businesses is worth paying attention to. These industries are experiencing a variety of good and bad that could impact confidence either way. As seen in the figure below petroleum and natural gas entrepreneurs show the most increased in confidence. The sectors growth in confidence has been relatively consistent from a low in September 2015 to a June 2018 high of 136. The sector as a whole has experienced market growth that this confidence may come from. Automobiles saw an 8 point decrease in confidence, more than likely tied to collateral damage in the industry from the trade war. Confidence in metals is stable. A slight decrease in March 2018 shows a hesitancy, but momentum in construction could push confidence higher. Railways, ships, and aircraft confidence lost 4 points, but currently at 124 is still higher than at any point before January 2018. We believe much of the increase in confidence is linked to price increases. There is a stable but buoyant confidence in these transportation sectors.