China’s services PMI report is red hot.
The HSBC China Composite PMI data (which covers both manufacturing and services) signalled a further expansion of business activity during January. Output at the composite level has now increased for five successive months, with January posting a solid rate of expansion, the fastest in two years. The HSBC China Composite Output Index posted 53.5 in January, up from 51.8 in December. Output across both the manufacturing and service sectors increased simultaneously for the third month in a row in January. Manufacturers signalled a marked rate of expansion in the context of historical data, while growth in the service sector was solid, as signalled by the HSBC China Services Business Activity Index recording 54.0 in January, up from 51.7.