Optimism despite slowdown in business
By Wang Yanlin |
March 4, 2011, Friday
|
Print Edition
Print Edition
CHINA'S services companies continued to see activities cool in February, but business confidence improved to a six-month high on a better economic outlook, two surveys showed yesterday.
After adjusting for seasonal variation, the HSBC Business Activity Index, which measures the services sector across the country, edged down to 51.9 last month from January's 52.
The latest reading was much lower than the long-term average of 57.5, and at a level indicative of only a modest rate of activity growth in the sector, the survey showed. A reading above 50 indicates growth.
Despite the easing, services providers were more confident about the one-year business outlook in February. Their optimism was the highest in six months.
Meanwhile, the non-manufacturing business activity index compiled by the China Federation of Logistics and Purchasing stood at 44.1 percent in February, down 12.3 percentage points from the previous month. The sharp fall was mainly due to seasonal changes, the federation said.
Qu Hongbin, a HSBC economist, said slower growth of services may help to curb inflation, and there's no need to worry about the easing.
"The tight labor market and rising business expectations warrant that the services activities will turn robust again in the coming months," Qu said.
After adjusting for seasonal variation, the HSBC Business Activity Index, which measures the services sector across the country, edged down to 51.9 last month from January's 52.
The latest reading was much lower than the long-term average of 57.5, and at a level indicative of only a modest rate of activity growth in the sector, the survey showed. A reading above 50 indicates growth.
Despite the easing, services providers were more confident about the one-year business outlook in February. Their optimism was the highest in six months.
Meanwhile, the non-manufacturing business activity index compiled by the China Federation of Logistics and Purchasing stood at 44.1 percent in February, down 12.3 percentage points from the previous month. The sharp fall was mainly due to seasonal changes, the federation said.
Qu Hongbin, a HSBC economist, said slower growth of services may help to curb inflation, and there's no need to worry about the easing.
"The tight labor market and rising business expectations warrant that the services activities will turn robust again in the coming months," Qu said.
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