China's service sector activity retreats in Sept
China's service sector activity slowed down in September from a peak in August, data company Market said Wednesday.
BEIJING -- China's service sector activity slowed down in September from a peak in August, data company Market said Wednesday.
The HSBC/Market China Services Business Activity Index, which provides a snapshot of operating conditions in the sector, was posted at 53.5, down from a 17-month high of 54.1 recorded in August.
The HSBC/Markit Index samples over 400 private service sector companies in China. A reading above 50 indicates expansion, while one below 50 indicates contraction.
The data showed that "new order books" expanded at a solid pace for service sector companies in September, despite the rate of increase easing since August's 19-month high.
While job shedding persists for manufacturers, service sector firms continued to raise staff numbers in September. Staffing levels rose for the thirteenth successive month at service providers in the month.
Service sector firms in China also saw a further rise in average input costs for September. However, the rate of inflation was moderate and the weakest since April.
Service providers were optimistic towards the 12-month business outlook, with the degree of positive sentiment rising to a six-month high in September.
The purchasing managers index (PMI) of non-manufacturing sectors posted at 54 percent in September, down 0.4 percentage points from August, according to a joint survey by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) last week.
A sub-index measuring new business jumped to 53.8 in June, the strongest expansion since Jan 2013, which suggested the domestic economy has regained some internal strength following the government's stimulus measures.
China has stepped up policy support in recent months to ensure that the slowing economy does not slip below the government's bottom line. Some of the measures unveiled by the government include targeted reserve requirement ratio cuts for some banks, quicker fiscal spending and hastening construction of railways and public housing projects.
A sub-index gauging business sentiment picked up slightly in June from May's 11-month low, though the reading remained weak in the context of historical data.
Stronger orders and the improving business outlook prompted services firms to hire more workers last month, as indicated by the employment sub-index, which rose to a three-month high.
The official PMI data also showed strong confidence among companies (60.4), although it dipped a bit over May, along with a drop in new order growth.
Analysts said the services sector has become a bastion to ensure China's employment despite a slowdown in the broader economy. Although China's GDP growth has slowed to a 18-month low of 7.4 percent in the first quarter, employment has been little affected.
China created 6 million new jobs during the first five months of the year, making it easier to achieve the government target of adding 10 million new jobs for 2014. The surveyed unemployment rate fell to 5.07 percent in May from 5.15 percent in April, Premier Li Keqiang said in June.
The services sector has steadily expanded in recent years and stood at 46 percent of China's GDP in 2013. It rose to 49 percent in the first quarter.
The HSBC/Market China Services Business Activity Index, which provides a snapshot of operating conditions in the sector, was posted at 53.5, down from a 17-month high of 54.1 recorded in August.
The HSBC/Markit Index samples over 400 private service sector companies in China. A reading above 50 indicates expansion, while one below 50 indicates contraction.
The data showed that "new order books" expanded at a solid pace for service sector companies in September, despite the rate of increase easing since August's 19-month high.
While job shedding persists for manufacturers, service sector firms continued to raise staff numbers in September. Staffing levels rose for the thirteenth successive month at service providers in the month.
Service sector firms in China also saw a further rise in average input costs for September. However, the rate of inflation was moderate and the weakest since April.
Service providers were optimistic towards the 12-month business outlook, with the degree of positive sentiment rising to a six-month high in September.
The purchasing managers index (PMI) of non-manufacturing sectors posted at 54 percent in September, down 0.4 percentage points from August, according to a joint survey by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) last week.
A sub-index measuring new business jumped to 53.8 in June, the strongest expansion since Jan 2013, which suggested the domestic economy has regained some internal strength following the government's stimulus measures.
China has stepped up policy support in recent months to ensure that the slowing economy does not slip below the government's bottom line. Some of the measures unveiled by the government include targeted reserve requirement ratio cuts for some banks, quicker fiscal spending and hastening construction of railways and public housing projects.
A sub-index gauging business sentiment picked up slightly in June from May's 11-month low, though the reading remained weak in the context of historical data.
Stronger orders and the improving business outlook prompted services firms to hire more workers last month, as indicated by the employment sub-index, which rose to a three-month high.
The official PMI data also showed strong confidence among companies (60.4), although it dipped a bit over May, along with a drop in new order growth.
Analysts said the services sector has become a bastion to ensure China's employment despite a slowdown in the broader economy. Although China's GDP growth has slowed to a 18-month low of 7.4 percent in the first quarter, employment has been little affected.
China created 6 million new jobs during the first five months of the year, making it easier to achieve the government target of adding 10 million new jobs for 2014. The surveyed unemployment rate fell to 5.07 percent in May from 5.15 percent in April, Premier Li Keqiang said in June.
The services sector has steadily expanded in recent years and stood at 46 percent of China's GDP in 2013. It rose to 49 percent in the first quarter.
