Missed this yesterday. China’s services PMI showed a small bounce in September, adding to the sense that the economy is close to the bottom, such as it is:
The HSBC Composite PMI data (which covers both manufacturing and services) signalled a renewed, albeit marginal, expansion in business activity during September. This followed on from August’s slight contraction, when activity fell for the first time since March.
The HSBC Composite Output Index posted 50.3 in September, up from 49.9 in August. As activity continued to fall in the manufacturing sector, growth in the service sector drove the overall improvement. This was illustrated by the HSBC Business Activity Index, which posted 54.3 in September, up from 52.0. Services output grew at the fastest rate since May.
New order volumes at service companies continued to rise and at the fastest rate in four months.
Commenting on the China Services and Composite PMI™ data, Hongbin Qu, Chief Economist, China & Co- Head of Asian Economic Research at HSBC said:
Service sector growth picked up in September thanks to rising new business flows. This is likely an indication of a gradual improvement of domestic economic conditions due to the earlier easing measures and the stronger consumption demand in the run-up to the Golden week holiday. While this helped to cushion the ongoing slowdown of manufacturing sectors, a meaningful turnaround in domestic demand requires additional easing efforts.
Which do not appear to be forthcoming. It’s a bounce along the 7%+ bottom for me.
