http://www.moneyspidery.com/2012/02/03/hsbc-china-services-pmi-steady-at-52-5-in-january/
The HSBC China Services PMI, which provides a snapshot of conditions
in businesses from restaurants to banks, stood at 52.5 for a third
straight month in January, signalling steady but sluggish expansion.
“Service sector activity kept a steady expansion in January thanks to a boost of new business,” Qu Hongbin, chief economist for China and co-head of Asian economic research at HSBC said in a statement accompanying the index.
“However, the overall strength of economic growth remained relatively weak, which will inevitably weigh on the jobs market if weakness persists for longer,” he added.
The steady expansion of the HSBC index contrasted with an official services PMI, released earlier on Friday, that showed a pullback to 52.9 in January from 56.0 in December, due in part to sluggish property investment. The two surveys often diverge, with the HSBC survey including a larger number of small businesses.
In August, the HSBC services PMI hit a historical low of 50.6, just above the 50 level that demarcates expansion from contraction, but it has since regained some strength. The figures are seasonally adjusted.
The January HSBC survey showed that growth in new businesses quickened to a three-month high, with respondents citing better market demand.
It also found that the pace of job creation in the services sector slowed to the weakest level since January 2009, though the sub-index stayed above the 50 boom and bust level.
Meanwhile, falling input price inflation in the services sector added to signs of easing price pressures in the world’s second-largest economy, creating room for pro-growth policies.
“With inflation on track to ease further, Beijing policy makers still have ample room for more policy easing measures to ensure a soft-landing,” Qu said.
A pair of surveys on the country’s vast manufacturing industry fanned hopes that the world’s second-largest economy may avoid a hard landing as the central bank shifts to a looser policy stance to support growth.
Expectations for new businesses also hit a three-month high, although the degree of optimism was still below the long-run average, said Markit, a British research firm that compiles the HSBC index.
Input price inflation moderated further for the third consecutive month in January, with companies keeping their average tariffs broadly unchanged from the previous month, according to the survey.
China’s services sector expanded at a
steady pace in January as new orders rose, but overall optimism lags
historical levels and employment growth dipped to a three-year low, a
private survey of purchasing managers showed on Friday.
“Service sector activity kept a steady expansion in January thanks to a boost of new business,” Qu Hongbin, chief economist for China and co-head of Asian economic research at HSBC said in a statement accompanying the index.
“However, the overall strength of economic growth remained relatively weak, which will inevitably weigh on the jobs market if weakness persists for longer,” he added.
The steady expansion of the HSBC index contrasted with an official services PMI, released earlier on Friday, that showed a pullback to 52.9 in January from 56.0 in December, due in part to sluggish property investment. The two surveys often diverge, with the HSBC survey including a larger number of small businesses.
In August, the HSBC services PMI hit a historical low of 50.6, just above the 50 level that demarcates expansion from contraction, but it has since regained some strength. The figures are seasonally adjusted.
The January HSBC survey showed that growth in new businesses quickened to a three-month high, with respondents citing better market demand.
It also found that the pace of job creation in the services sector slowed to the weakest level since January 2009, though the sub-index stayed above the 50 boom and bust level.
Meanwhile, falling input price inflation in the services sector added to signs of easing price pressures in the world’s second-largest economy, creating room for pro-growth policies.
“With inflation on track to ease further, Beijing policy makers still have ample room for more policy easing measures to ensure a soft-landing,” Qu said.
A pair of surveys on the country’s vast manufacturing industry fanned hopes that the world’s second-largest economy may avoid a hard landing as the central bank shifts to a looser policy stance to support growth.
Expectations for new businesses also hit a three-month high, although the degree of optimism was still below the long-run average, said Markit, a British research firm that compiles the HSBC index.
Input price inflation moderated further for the third consecutive month in January, with companies keeping their average tariffs broadly unchanged from the previous month, according to the survey.
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