China’s services PMI confirmed the slowing growth seen in the manufacturing index. HSBC reported that the Chinese “private sector cooled markedly” as services PMI came in at 51.9 vs last month’s 54.6. The key takeaways from the report:
- Private sector activity rises only modestly in February.
- Overall cost inflation hits three-month high.
- Service sector business optimism improves to highest in six months.
Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC elaborated on the report:
“China’s service sector continued to expand modestly in February, generating faster job creation. Slower growth of services new business will help to curb inflation while the tight labour market and rising business expectations warrant the robustness of services activities in the coming months.”