Business / Industries

HSBC: Service sector growth down in Oct

By Chen Jia ( Updated: 2012-12-06 15:03

The expansion of China's service sector moderated to a three-month low in November, according to the HSBC service purchasing manufacturers index figure of 52.1, which fell from 53.5 in October.

The indicator was dragged down by cooling new business growth. The PMI's sub-index in this sector slowed to a three month low of 52.2, compared with October's 53, according to the HSBC.

A slight seasonal moderation in demand for services is thought to be the main reason for the slower expansion of service activities, said a research note of the Hong Kong-based bank.

"This was not fully offset by the recent improvement in demand for production-related services, as manufacturing activities are still bottoming out," said Sun Junwei, a China economist with HSBC.

The HSBC manufacturing PMI jumped to its highest point at 50.5 in 13 months. It was the first time it rose above 50 in more than a year.

"Taking together November's manufacturing and services PMIs, China's economy is still on track for a gradual growth recovery," the HSBC research said. "This is likely to be further consolidated as policy-easing measures fully unfold in the coming months."


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