05-08-2014, 09:22 PM
China services PMI hits low point
FERGUS RYAN BUSINESS SPECTATOR AUGUST 05, 2014 1:37PM
THE HSBC China Services Business Activity Index dropped to its lowest point since the series began in July.
The index printed at 50 in the month, a sharp drop from a 15-month high of 53.1 in June.
A reading above 50 indicates expansion, while a reading below signals contraction.
Chief economist, China and co-head of Asian economic research at HSBC, Hongbin Qu, said the result for July was the lowest such reading since the series began in November 2005.
“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,” he said.
“Meanwhile, the employment and business sentiment indices remain stable. In the coming months, we think the service sector may get some support from the recovery in investment.”
Mr Qu said today’s data shows the need for continued policy support to “offset the drag from the property correction and consolidate the economic recovery”.
FERGUS RYAN BUSINESS SPECTATOR AUGUST 05, 2014 1:37PM
THE HSBC China Services Business Activity Index dropped to its lowest point since the series began in July.
The index printed at 50 in the month, a sharp drop from a 15-month high of 53.1 in June.
A reading above 50 indicates expansion, while a reading below signals contraction.
Chief economist, China and co-head of Asian economic research at HSBC, Hongbin Qu, said the result for July was the lowest such reading since the series began in November 2005.
“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,” he said.
“Meanwhile, the employment and business sentiment indices remain stable. In the coming months, we think the service sector may get some support from the recovery in investment.”
Mr Qu said today’s data shows the need for continued policy support to “offset the drag from the property correction and consolidate the economic recovery”.