HSBC's China services PMI confirms rebound indicated by official figure
Reading for Hong Kong edges higher despite drop in new orders from mainland
A private survey released on Tuesday confirmed official figures from the weekend that showed growth in China’s services industry edged up last month, offering further indications that the economy has stabilised in the run-up to a key party reform meeting.
The Markit/HSBC services purchasing managers index (PMI) rose to 52.6 from September’s 52.4, well above the 50 line that separates expansion from contraction.
The survey showed new business growth was at a seven-month high, and the business outlook for the next 12 months improved on the previous month, although it was still below trend. Employment levels also ticked up.
“Service sectors saw modest but broad-based improvement into 4Q,” said HSBC economist Qu Hongbin, in a note accompanying the data.
“This should help cement China’s growth momentum in the coming months.”
The overall message tallied with that in China’s official services PMI on Sunday, which showed a rise to 56.3, the fastest increase in 13 months.
But the two surveys differed in their reports for new orders, with the HSBC survey showing an increase to the highest level since March, while the official survey registered a decrease from the previous month.