The services industry in China weakened somewhat last month with new businesses cooling down, says the results of a private survey that echoed other indicators that suggest that the second biggest economy in the world is slowing down.
HSBC/Markit’s purchasing managers’ index (PMI) for the services sector fell from its highest level in 17 months of 54.1 in August to 53.5 in September. A sub-index of the PMI for new businesses dropped to 53.2 from August’s 53.9, the highest for the past 19 months, despite employment and outstanding businesses increasing. The updated reading still lies ahead of the 50 level that differentiates expansion from contraction.
HSBC’s chief economist for China, Qu Hongbin, described the results by saying that, “Overall, the services sector held up in September, despite the downward pressure seen in the manufacturing sector. We think risks to growth in the near term are still on the downside, and warrant accommodative monetary as well as fiscal policies.”
China’s services sector accounted for 46.1% of its gross domestic product in 2013 when it surged past the secondary sectors of construction and manufacturing for the first time behind the government’s target of improving domestic demand and jobs creation.
The growth in retail sales for the East Asian country during its Golden Week holiday fell from the previous year’s 13.6% to 12.1%, based on Wednesday’s data from the Ministry of Commerce.
Despite the unlikely scenario of government officials introducing additional significant stimulus packages to meet their growth target of 7.5% for 2014, analysts forecast that more policies will still be needed. In April, China accelerated spending for railways and public housing and cut reserves required to be kept by some of its banks.
The material has been provided by InstaForex Company – www.instaforex.com
The services industry in China weakened somewhat last month with new businesses cooling down, says the results of a private survey that echoed other indicators that suggest that the second biggest economy in the world is slowing down.
HSBC/Markit’s purchasing managers’ index (PMI) for the services sector fell from its highest level in 17 months of 54.1 in August to 53.5 in September. A sub-index of the PMI for new businesses dropped to 53.2 from August’s 53.9, the highest for the past 19 months, despite employment and outstanding businesses increasing. The updated reading still lies ahead of the 50 level that differentiates expansion from contraction.
HSBC’s chief economist for China, Qu Hongbin, described the results by saying that, “Overall, the services sector held up in September, despite the downward pressure seen in the manufacturing sector. We think risks to growth in the near term are still on the downside, and warrant accommodative monetary as well as fiscal policies.”
China’s services sector accounted for 46.1% of its gross domestic product in 2013 when it surged past the secondary sectors of construction and manufacturing for the first time behind the government’s target of improving domestic demand and jobs creation.
The growth in retail sales for the East Asian country during its Golden Week holiday fell from the previous year’s 13.6% to 12.1%, based on Wednesday’s data from the Ministry of Commerce.
Despite the unlikely scenario of government officials introducing additional significant stimulus packages to meet their growth target of 7.5% for 2014, analysts forecast that more policies will still be needed. In April, China accelerated spending for railways and public housing and cut reserves required to be kept by some of its banks.
The material has been provided by InstaForex Company – www.instaforex.com
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