Growth slows in China's services sector, HSBC PMI shows
The Markit/HSBC services PMI for September dipped to 52.4 from August’s 52.8, still well above the 50 line that separates expansion from contraction. A rise in new business offset a decline in new orders, the survey said.
Growth in China’s services industry slowed in September, and optimism about the business outlook weakened, a private survey showed on Tuesday, indicating that the nascent recovery in the world’s No 2 economy is likely to remain a slow one.
The reading is in contrast to China’s official services PMI, released last week, which showed the sector expanded at the fastest pace in six months in September as demand grew. The official PMI rose to 55.4 in September from August’s 53.9.
The two surveys differ in that the official one is more weighted towards bigger and state-owned firms while the Markit/HSBC one looks more at smaller private firms.
The discrepancy points to the possibility of a two-tier recovery.
The services industry, which has so far weathered the global slowdown much better than the factory sector, is an increasingly important pillar in China’s economy, especially as the government seeks to expand domestic consumption to drive growth.