Services sector growth drops to one-year low: HSBC
Updated: 2012-09-05 15:40
By Chen Jia (chinadaily.com.cn)
The growth rate of the Chinese services sector slowed to a one-year low in August, mainly due to a slower increase in new orders, a HSBC survey said on Wednesday.
The HSBC Business Activity Index, which monitors the services industry, dropped to 52 in August from 53.1 in July, the slowest growth pace since August 2011.
The August official non-manufacturing PMI showed an opposite scenario, increasing to 56.3 in August from July's 55.6 level, the National Bureau of Statistics and the China Federation of Logistics and Purchasing said on Monday.
"Beijing is expected to do more to counter balance external shocks," said Qu Hongbin, chief China economist with HSBC.
In order to stabilize growth, the government is expected to do more and sooner rather than later, Qu said.
Regarding the business outlook, Chinese service providers expressed optimism, the HSBC report said. They mentioned hopes that demand will strengthen over the coming year. Many of them also disclosed new product development and business expansion plans.