China’s December services PMI slips to lowest in over 2 years

ChinaGrowth of China's services sector slipped to its lowest point in more than two years in December 2013, according to a freshly released private sector survey.

The HSBC-Markit services sector Purchasing Managers' Index (PMI) slipped from 52.5 in November to 50.9 in December. It was the lowest reading since August 2011, while new business expansion in the month under review was the slowest in six months.

HSBC's China chief economist Qu Hongbin said that they expected the stable growth of manufacturing sectors to support the service sector growth.

Commenting on the survey's findings, Qu said, "Moreover, the implementation of reforms such as lowering the entry barriers for private business in service sectors and expanded VAT reforms should help to revitalise service sectors in the year ahead."

A reading of above 50 stands for expansion in a sector, while a reading of below 50 represents contraction.

On Friday last week, a similar survey by China's National Bureau of Statistics (NBS) also showed a slowdown in the country's services sector's growth to a four-month low of 54.6.

Both surveys followed last week's two other PMIs that showed a slowdown in China's factory activity growth in December. All the surveys are suggesting a moderation in the country's overall growth in the final quarter of 2013.




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