Related News
China services activity hits year-low in August
By Wang Yanlin |
September 5, 2012, Wednesday
|
Online Edition
Online Edition
China's small service firms posted the slowest growth rate in a year in August but the sector continued to create jobs, an HSBC survey showed today.
The Business Activity Index, a gauge of operating conditions in mainly private and export-oriented service companies, was at 52 in August, down from 53.1 in July.
A reading above 50 means expansion. The August index indicates a continued expansion in the service sector, according to a report by Markit, a financial information services company.
However, the latest output increase was the weakest for a year, and many companies surveyed said there was virtually no growth in new orders.
"The HSBC services PMI moderated last month because of slower new order intakes," said Qu Hongbin, chief economist for China at HSBC. "Plus a nine-month low of new orders in the HSBC manufacturing PMI, it suggests that the main risk confronting China's economy is still to the downside."
Qu said he expected China to do more to counterbalance the external shock as service companies expressed the lowest level of optimism for their near-term business outlook.
But these companies reported another month of employment growth in August, which was attributed to new business expansion plans, the report said.
State-owned service companies seemed to fare better. The official non-manufacturing Purchasing Managers' Index, which is weighted toward big state-owned enterprises, rose 0.7 points from a month earlier to 56.3 in August, bolstered by more supply and higher prices. Growth of new orders also slowed a bit among the SOEs last month.
The Business Activity Index, a gauge of operating conditions in mainly private and export-oriented service companies, was at 52 in August, down from 53.1 in July.
A reading above 50 means expansion. The August index indicates a continued expansion in the service sector, according to a report by Markit, a financial information services company.
However, the latest output increase was the weakest for a year, and many companies surveyed said there was virtually no growth in new orders.
"The HSBC services PMI moderated last month because of slower new order intakes," said Qu Hongbin, chief economist for China at HSBC. "Plus a nine-month low of new orders in the HSBC manufacturing PMI, it suggests that the main risk confronting China's economy is still to the downside."
Qu said he expected China to do more to counterbalance the external shock as service companies expressed the lowest level of optimism for their near-term business outlook.
But these companies reported another month of employment growth in August, which was attributed to new business expansion plans, the report said.
State-owned service companies seemed to fare better. The official non-manufacturing Purchasing Managers' Index, which is weighted toward big state-owned enterprises, rose 0.7 points from a month earlier to 56.3 in August, bolstered by more supply and higher prices. Growth of new orders also slowed a bit among the SOEs last month.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
