- Composite data points to strongest rise in output in four months
- Outstanding business at the composite level falls by most since January 2009
- Total employment broadly unchanged since October
The HSBC China service sector purchasing managers’ index fell to 52.1 in November from 53.5 the month before, according to data compiled by Markit.
New business increased modestly at service providers during November. However, the rate of growth had eased from October to the slowest in three months.
Similarly, the level of outstanding business fell at the fastest pace since February 2009.
Nevertheless, November saw the first simultaneous increase in levels of activity in both sectors – manufacturing and services – since July.
As well, service providers in China remained highly optimistic towards future growth of business activity in November, with over 31% of survey respondents expecting business activity to increase in the next year.
Lastly, input prices increased in both sectors during November, but the rates of inflation slowed from the previous month.
Commenting on the China Services and Composite PMI data, Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC said:
‘Despite the moderating growth of services activities in November, services providers hired more workers and became more optimistic on future outlook. Services sectors’ performance is likely to get a lift from the recovering manufacturing growth, as the filtering-though of policy easing is likely to boost domestic demand in the coming months.’