Softening growth momentum in a sector of the economy that has been driving job creation prompts investors to sell down stock holdings.
The mainland’ services secor is adding to investors’ gloom over prospects for the economy, as two surveys yesterday signaled that a faltering first-half recovery from the slowest full year of growth since 999 risks getting worse in the months ahead.
Purchasing Managers’ Index readings of the services industry from both the National Bureau of Statistics and HSBC suggest domestic demand is drooping at the same time as external appetite for mainland exports is shrinking, putting downward pressure on the economy.
The headline reading on the HSBC PMI, which tracks mainly smaller firms in the private sector, was steady at 51.3, compared with May’s 51.2.
A similar survey of bigger, mainly state-backed firms by the National Bureau of Statistics found activity in the services sector expanded at a slower pace, with its services PMI dropping to 53.9 from 54.3 in May.
~ SCMP, July 4, 2013 ~