by Chris Becker
The HSBC/Market Services and composite PMI (purchase managers index) was just released and it has moderated somewhat from 54.1 to 53.5 and 52.3 from 52.8 for September. Above 50 reading signifies expansion, below 50 is contraction.
Here are the key findings:
- September data signalled slightly weaker expansions of both manufacturing and services business activity.
- Furthermore, latest data indicated the weakest increase in manufacturing output in the current four-month sequence of expansion.
- Meanwhile, service sector business activity growth eased from August’s recent peak but remained solid overall.
- However, the rate of new order growth at manufacturing firms was only moderate.
- Meanwhile, new order books expanded at a solid pace at service sector companies, despite the rate of increase easing since August’s 19-month high.
- Staffing levels rose for the thirteenth successive month at service providers in September, while workforce numbers declined modestly at manufacturers.
- At the composite level, employment declined for the second month in a row, albeit marginally.
- Service sector firms in China saw a further rise in average input costs in September. However, the rate of inflation was moderate and the weakest since April.
- Meanwhile, cost burdens faced by manufacturers fell at a solid pace.
- Consequently, input costs declined for the first time in five months at the composite level, though only slightly.
- Service providers were optimistic towards the 12-month business outlook, with the degree of positive sentiment rising to a six-month high in September. Moreover, 31% of panellists forecast increased activity over the next year.
Seems like rebalancing continues apace with inflation in check.
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