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Fall in Chinese services PMI indicates slowdown is broadbased

  • Chinese HSBC services PMI dropped to the lowest level since August 2011, falling to 50.9 in December from 52.5 in November.
  • The decline mirrors a drop in the official print to 54.6 from 56, as well a deceleration in manufacturing growth, and suggests that the slowdown in the economy is broad-based.
  • The sub-index for new business orders sank to a six-month low of 51.8, although labor conditions improved.
  • HSBC put a positive spin on the data, saying it expects that the expansion in manufacturing and that economic reform will support the services sector.
  • Still, the reading helped drag down Asian markets amid fears that China's slowdown will continue in Q1.
  • The Shanghai Composite -1.8%, Hang Seng -0.4%, Japan -2.35%, India -0.3%. (PR)
  • ETFs: FXI, PGJ, GXC, FXP, HAO, CYB, YINN, CNY, TAO, CHIQ, CHIX, ASHR, MCHI, YANG, PEK, CQQQ, DSUM, XPP, QQQC, YAO, KWEB, CHXX, CHII, FXCH, ECNS, CHXF, CHIE, YXI, CHIM, KFYP, FCA, TCHI, CHLC, CHNA
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Comments (1)
  • Philip Marlowe
    , contributor
    Comments (1311) | Send Message
     
    I should point out that it is not an actual slowdown, it is a reduction in the rate of growth. PMIs over 50 signify growth.
    6 Jan 2014, 02:59 AM Reply Like
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