Follow us on:   

China services PMI drops to 9-year low: HSBC
August 5, 2014, 4:35 am

The HSBC/Markit China Services Business Activity Index samples over 400 private service sector companies in China [AP]

The HSBC/Markit China Services Business Activity Index samples over 400 private service sector companies in China [AP]

China’s service sector activity stagnated as the headline HSBC/Markit China Services index for July hit its lowest reading since 2005, data company Markit said Tuesday in a statement.

The HSBC/Markit China Services Business Activity Index posted at the no-change mark of 50.0 in July down from 53.1 in June.

HSBC chief China economist Qu Hongbin said in a statement China’s service sector should receive support from the recovery in investment in the coming months.

“Today’s data points to the need [for] continued policy support to offset the drag from the property correction and consolidate the economic recovery,” he said.

This was the lowest reading in the nearly nine-year history of the series, according to Markit.

The HSBC/Markit China Services Business Activity Index samples over 400 private service sector companies in China.

According to Markit, new order growth at service providers was the weakest in over five-and-a-half years. Backlogs of work at service providers fell at the fastest rate in 20 months.

Positive sentiment among Chinese service providers remained historically weak amid reports that an uncertain economic outlook weighed on overall confidence, said the statement.

“The weakness in the headline number likely reflects the impact of the ongoing property slowdown in many cities as property-related activity, such as agencies and residential services, see less business,” said Qu.

 

Source: Agencies

Leave a Reply

Your email address will not be published. Required fields are marked *

Anti-Spam * Time limit is exhausted. Please reload the CAPTCHA.