A measure for industries in China that excludes manufacturing fell to its lowest last month, pressuring officials in Beijing to introduce more stimulus to offset the country’s flagging property market.
The purchasing managers’ index (PMI) for non-manufacturing released today by the National Bureau of Statistics and the China Federation of Logistics and Purchasing declined from 54.4 in August to 54.0 in September, narrowing the gap from the 50 level that separates contraction and growth.
The PMI reading indicates that a slump in the property market is dragging down the services sector which is boosting China’s economy with its strong performance during the past year. In August, the pace of expansion in industrial production levels dropped to the slowest in five years while the growth of investments moderated. When combined with the service industry’s weakening, the Chinese government is provided another obstacle in meeting its target gross domestic product (GDP) for the year.
The services industry was responsible for 46.6% of China’s GDP during the first six months of the year, an improvement from 2013 of 1.3 percentage points based on official data released alongside the government report earlier in July on second quarter’s GDP. Last week, a separate PMI for manufacturing showed activity levels at the 51.1 level.
Financial markets in China were closed today due to a national holiday.
The material has been provided by InstaForex Company – www.instaforex.com
A measure for industries in China that excludes manufacturing fell to its lowest last month, pressuring officials in Beijing to introduce more stimulus to offset the country’s flagging property market.
The purchasing managers’ index (PMI) for non-manufacturing released today by the National Bureau of Statistics and the China Federation of Logistics and Purchasing declined from 54.4 in August to 54.0 in September, narrowing the gap from the 50 level that separates contraction and growth.
The PMI reading indicates that a slump in the property market is dragging down the services sector which is boosting China’s economy with its strong performance during the past year. In August, the pace of expansion in industrial production levels dropped to the slowest in five years while the growth of investments moderated. When combined with the service industry’s weakening, the Chinese government is provided another obstacle in meeting its target gross domestic product (GDP) for the year.
The services industry was responsible for 46.6% of China’s GDP during the first six months of the year, an improvement from 2013 of 1.3 percentage points based on official data released alongside the government report earlier in July on second quarter’s GDP. Last week, a separate PMI for manufacturing showed activity levels at the 51.1 level.
Financial markets in China were closed today due to a national holiday.
The material has been provided by InstaForex Company – www.instaforex.com
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