China’s Services Sector Rebounds in August
China‘s services sector expanded at its strongest pace in 17 months in August, as new business rebounded after a sharp slowdown in July, surveys showed on Wednesday.
The services purchasing managers’ index compiled by HSBC/Markit jumped to 54.1 in August — the strongest reading since March 2013 — from a nine-year low of 50 in July. Earlier Wednesday, China’s official P.M.I. services index for August was reported as 54.4, compared with July’s six-month low of 54.2.
A reading above 50 in P.M.I. surveys indicates an expansion in activity while one below that threshold points to a contraction.
A sub-index in the HSBC survey measuring new business hit a 19-month high of 53.9 in August, but sub-indexes measuring employment and outstanding business retreated, painting a mixed picture.
“The economy still faces downside risks to growth in the second half of the year from the property sector slowdown. We think policymakers should use further easing measures to help support the recovery,” said Qu Hongbin, chief China economist at HSBC.
Activity in China’s vast factory sector cooled in August as foreign and domestic demand slowed, two surveys showed on Monday, spurring new calls for more policy easing to prevent the economy from stumbling once more.
Source: NYT
