News
Chinese services PMI declined to 52.0 in August from 53.1, as new
business sub-index slumped to lowest pace since 2011
However, very important sub-index of unemployment rose to 52.7, giving
some time to policy makers to fine tune their monetary policy as they
have promised in past
Policy makers will be under pressure from this reading as services
sector which contributes 43 pct to economic activity, is seen
entering a lull phase of activity, while mfg index has already entered
into contraction zone on both the PMIs
However, Govt is still expected to remain cautious and selective in
providing further stimulus to the economy to prevent forming bubble in
sectors like property market
Quotes
"Service providers in China expressed optimism regarding the
business outlook,"
"There were also reports of new product developments and business
expansion plans. However, the extent of positive sentiment was the
lowest in eight months, and muted in the context of historical data."
Markit Economics
No comments:
Post a Comment