CHINA's services industries bounced
back from the slowest expansion in at least 19 months, adding to manufacturing
gains that point toward the world's second-biggest economy is getting better
from a seven-quarter slowdown.
According to the National Bureau of
Statistics and China Federation of Logistics and Purchasing, the purchasing
managers' index rose to 55.5 in October from 53.7 the previous month,. A
separate services index released on Monday by HSBC Holdings Plc and Markit
Economics in Beijing fell to 53.5 in October from 54.3.
Growth in
services along with reports of last week that showed a pickup in manufacturing
industries may ease pressure on China's leaders to roll out more stimulus as
they start a once- a-decade power transfer.
The Chinese central
bank said the economy is expected to maintain "steady and relatively rapid
growth" as earlier government policies to support expansion take effect.
Investors who are expecting a big stimulus package will likely be disappointed,
although the new leaders will probably introduce some new projects. Indicators
including employment and inflation suggest that growth is probably not
significantly below its potential.
China's economic expansion cooled to
a three-year low of 7.4% in the third quarter as Premier Wen Jiabao's campaign
to curb consumer and property prices damped domestic demand and a sluggish
global recovery capped the nation's exports.
China's non-manufacturing
PMI is based on responses from purchasing managers at 1,200 companies in 27
industries including banking, retailing, construction and transportation. After
the government cut interest rates, accelerated investment spending and project
approvals and cut taxes more acceleration is expected on the cards.
|
