China services sector slows to 6-month low in January
China’s services sector grew at the slowest pace in six months in January as growth in new business weakened, a private survey showed, raising expectations that policymakers may unveil more stimulus steps to avert a sharper slowdown in the world’s second-largest economy.
China’s services sector grew at the slowest pace in six months in January as growth in new business weakened, a private survey showed, raising expectations that policymakers may unveil more stimulus steps to avert a sharper slowdown in the world’s second-largest economy.
The HSBC/Markit Services Purchasing Managers’ Index(PMI) slowed to 51.8 last month – the weakest since July 2014 – from December’s 53.4, but remained above the 50-point level that separates growth from contraction in activity on a monthly basis.
The weakening performance of the services sector, which has helped cushion the broader impact of a cooling manufacturing sector, could fan market concerns about China’s economic slowdown in 2015.
“The Chinese services sector continued to expand in January, albeit at a slower pace while both input and output price inflation eased,” said Qu Hongbin, chief economist at HSBC.
“Given continued contraction of the manufacturing sector, we believe more easing measures are warranted to support growth in the coming months.”
A sub-index measuring new business eased to 52.5 in January, also a six-month low, but the sub-index measuring employment inched up as firms hired more workers for the 17th month in a row.
