HSBC China Services PMI Firmer in October, One Of The Year's Strongest Expansions

The HSBC China Services Business Activity Index firmed to 52.6 in October, up from 52.4 in September.

“This signalled a further moderate increase in business activity in the Chinese service sector,” HSBC said.

“Although growth remained modest and weak in the context of historical data, it was one of the strongest expansions in 2013 so far.”

Chinese service sector companies were optimistic regarding the 12-month business outlook in October, with almost a quarter of survey respondents expecting higher activity levels in one year’s time.

The degree of positive sentiment improved from the previous month and was the second strongest in seven months.

However, confidence was weaker than the series average. Anecdotal evidence suggested the launch of new products and improving economic conditions will boost activity over the next year.

Key Points:
• New order growth accelerates to seven-month high across both the manufacturing and service sectors
• Employment rises for the first time since March at the composite level
• Input prices increase solidly at both manufacturers and service providers

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