China’s official non-manufacturing index, its services index, collapsed to a one-year low in February, hitting 46.1 vs. 55.1 in January.
The Chinese new year surely had a negative impact, but it remains to be seen how much fo the slow-down was due to the new year holiday and how much represents an actual slow-down. This February’s reading was still above the 41.9 level it hit last February.
Yet the official data was more negative than the services index calculated by HSBC:
Its sharp drop contrasted with HSBC’s China services sector PMI, which eased only a touch to 56.7 in February, staying comfortably within expansionary territory.
All of the PMI surveys for February were complicated by the timing of the Chinese New Year holiday, which effectively halted work for a full week last month.
According to the CFLP’s official survey, the new order sub-index for China’s service sectors fell to 46.2 in February. But the outlook sub-index was strong at 68.0, showing that service sector managers remained confident.
Does HSBC adjust out the new year?