Signs of slowdown in China point to more easing
Beijing's annual growth target of 7.5pc at risk as the cooling property industry weighs down the services sector while export demand softens
Growth in the mainland's services sector weakened further last month as new business cooled, a private survey showed yesterday, reinforcing signs of a gradual slowdown in the economy that could prod the government to unveil fresh stimulus measures.
A reading above 50 indicates an expansion in activity while one below points to a contraction.
A sub-index measuring new business fell to 53.1 from 53.2, but the ones measuring employment and outstanding business both inched up, painting a mixed picture.
"Overall, the services sector grew steadily in October as the business conditions continue to look better than in the manufacturing part of the economy," said Qu Hongbin, the chief China economist at HSBC. "While this pattern will likely continue, we still expect further [policy] easing measures in the coming months to help offset the downward pressure on the economy."
In Hong Kong, the PMI compiled by HSBC for last month was at 47.7 as it signalled the strongest pace of deterioration in operating conditions in the private business sector since September 2011.
The fall was widely attributed to recent political protests, although there had already been signs that growth was slowing in past months.