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3 Jul 2015
HSBC China Services PMI: Slowest expansion in over a year
FXStreet (Bali) - Chinese business activity expanded at slowest rate in over a year, with the HSBC China Services Business Activity Index posting 51.8, down from May’s eight-month high of 53.5, Markit reports.
Commenting on the China Services and Composite PMI™ data, Annabel Fiddes, Economist at Markit said: “In the service sector, business activity, new orders and employment all expanded at slower rates, while optimism towards the business outlook also moderated.Meanwhile, manufacturers cut their staff numbers at the quickest rate in over six years and output fell slightly for the second month in a row."
Fiddes adds: "Tentative signs of improvement were evident at manufacturers, however, with new orders and purchasing activity rising slightly in June. However, the persistent underperformance of manufacturers combined with a slowdown in the service sector could prompt the authorities to introduce further stimulus measures to ensure growth momentum improves in the second half of the year - and reach the GDP growth target of around 7%.”
Commenting on the China Services and Composite PMI™ data, Annabel Fiddes, Economist at Markit said: “In the service sector, business activity, new orders and employment all expanded at slower rates, while optimism towards the business outlook also moderated.Meanwhile, manufacturers cut their staff numbers at the quickest rate in over six years and output fell slightly for the second month in a row."
Fiddes adds: "Tentative signs of improvement were evident at manufacturers, however, with new orders and purchasing activity rising slightly in June. However, the persistent underperformance of manufacturers combined with a slowdown in the service sector could prompt the authorities to introduce further stimulus measures to ensure growth momentum improves in the second half of the year - and reach the GDP growth target of around 7%.”