• Resume dialogue for inclusive political process: Ban Ki-moon
  • US speeds up supply of military equipment to Iraq
  • Sudan and S Sudan agree to protect oilfields
  • Pressure mounts on Sheikh Hasina after walkover election
  • Covered van driver killed in Feni
  • Terrorists torch 531 schools, colleges
  • 41 bombs seized in Pabna
  • Myanmar journalists stage rare protest
  • 48-hr hartal underway peacefully
  • BNP to realise its stupidity soon: Obaidul Quader
  • Two more BNP leaders detained
  • Hasina meets president
  • 18-party extends hartal by 12 hrs
  • BNP leader Selima Rahman held
  • Khandaker Mahbub arrested
Print Friendly and PDF

China services industry growth slows

Reuters . Beijing

A file photo shows a cook arranging baskets of newly-made dumplings at a restaurant in Shenyang, Liaoning province. — Reuters photo
 A file photo shows a cook arranging baskets of newly-made dumplings at a restaurant in Shenyang, Liaoning province. — Reuters photo

Growth in China’s services industries slowed in December, a pair of surveys showed, mirroring a slowdown in manufacturing and confirming views that the world’s second-largest economy lost steam at the end of last year.
The HSBC/Markit Economics services Purchasing Managers’ Index (PMI) dropped to 50.9 in December, its lowest since August 2011, from 52.5 in November, HSBC said on Monday.
New business expansion was the slowest in six months.
The PMI follows a similar survey by China’s National Bureau of Statistics on Friday, which showed a slowdown in service-sector growth to a four-month low of 54.6 from the previous month’s 56.0.
Both surveys follow two other PMIs last week that showed China’s factory activity slowed in December, suggesting the moderation in the country’s growth in the final quarter of 2013 was broad-based.
But all four measures remained above the 50 point level that separates expansion in activity from contraction.
China’s economy has regained some momentum since mid-year after a protracted slowdown. While it was expected to lose steam as the government reins in rampant credit growth and demand for China’s exports remains subdued, activity has remained resilient into the December quarter.
Beijing has said it will accept slower growth as it tries to reshape the economy towards more sustainable growth, based on consumer demand, after three decades of breakneck expansion led by exports and credit.
China’s economic growth is likely to come in at 7.6 per cent in 2013, the government has said, just above the official target of 7.5 per cent and slightly below the 7.7 per cent in 2012. Data for 2013 GDP is set to be released on January 20.
The weaker PMIs added steam to a fall in Asian markets on Monday, on concern over whether China’s slowdown will continue into the first quarter.
‘What has been the principal sort of driver of the market since the beginning of the new year has been a disappointment of the Chinese PMI data,’ said Guy Stear, Asian credit and equity strategist at Societe Generale in Hong Kong, adding that growth in China is a ‘focal point’ for markets.
MSCI’s broadest index of Asia-Pacific shares excluding Japan .MIAPJ0000PUS was down 0.6 per cent, reaching a two-week low and adding to a 1.1 per cent drop on Friday. China’s CSI300 index .CSI300 fell 2.5 per cent, hitting a five-month low.
The HSBC/Markit services PMI’s sub-index measuring new business orders dropped to a six-month low of 51.8 in December on subdued client demand.
However, labour market conditions improved for the fourth consecutive month, with the employment sub-index growing at the strongest pace since June, mainly due to company expansions, the PMI showed.
‘We expect the steady expansion of manufacturing sectors to lend support to service sector growth,’ said HSBC’s China chief economist, Qu Hongbin.
‘Moreover, the implementation of reforms such as lowering the entry barriers for private business in service sectors and expanded VAT reforms should help to revitalise service sectors in the year ahead,’ Qu said.
The HSBC/Markit PMI covers more smaller private firms than the official one, which is more weighted towards bigger state owned enterprises that can weather slowdowns better.

Reader’s Comment

comments powered by Disqus

RMG buyers mull shifting orders to Ctg

Global buyers of Bangladesh readymade garment products are mulling to shift their work orders to factories located in Chittagong from Dhaka as the factories in the port city enjoy less disruption in transportation... Full story

BB may keep pvt sector credit growth target unchanged

Bangladesh Bank may keep unchanged the private sector credit growth target in the upcoming monetary policy for January-June of 2014 considering the existing political unrest, said officials of the central bank. Full story

Incentives for apparel sector likely this week

The leaders of the country’s apparel associations on Monday said they were expecting announcement of incentives for the sector from the government this week. They expressed their optimism emerging... Full story

Kuwait to resume B’desh worker recruitment

A file photo shows Asian labourers working in a street in Kuwait City. — AFP photo
Kuwait is going to resume recruitment of workers from Bangladesh after a seven-year break, senior officials at the expatriates’ welfare and overseas employment ministry said on Monday. The Bangladesh... Full story

Dhaka stocks fall after polls

Dhaka stocks declined on Monday after a four-day bull run with a decreased turnover amid fresh political tension after the 10th national elections held on Sunday. The polls were boycotted by the main opposition alliance led by the BNP. Full story

Turkish lira hits record low

The Turkish lira plunged to a new low against the dollar on Monday, pressured by a high-level corruption scandal rattling the government. The lira fell to 2.1947 to the dollar, after dropping to 2.18 on Thursday and 2.17 on Friday. Full story

China makes fresh bid to curb shadow banking

China’s cabinet has published guidelines strengthening regulation of risky off-balance-sheet lending in a new effort to address growing financial risks from an explosion in debt. The State Council’s... Full story

Decent end to 2013 for global services but uneven

Service industry growth slowed sharply in China as 2013 drew to a close but picked up across most of Europe, suggesting still very uneven global economic performance even as most signs point to a strengthening US revival. Full story

India considers easing gold import curbs

An employee shows gold bangles to a customer at a jewellery showroom on the occasion of Dhanteras, a Hindu festival associated with Lakshmi, the goddess of wealth, at a market in Mumbai recently. — Reuters photo
Officials are in discussions to cut a record high import duty on gold and relax rules on exports, government sources said, after the measures helped narrow the country’s trade deficit and now threaten to encourage smuggling. Full story

China services industry growth slows

A file photo shows a cook arranging baskets of newly-made dumplings at a restaurant in Shenyang, Liaoning province. — Reuters photo
Growth in China’s services industries slowed in December, a pair of surveys showed, mirroring a slowdown in manufacturing and confirming views that the world’s second-largest economy lost steam at the end of last year. Full story

UK govt announces major cuts to welfare spending

Chancellor George Osborne announced major cuts to Britain’s welfare spending on Monday as he warned voters that the economic recovery could not be taken for granted. With an election due in 16 months and... Full story

Sonali Bank gets 3 new DMDs

Three officials of Sonali Bank were on Monday promoted to deputy managing directors, said a news release. They are Zahid Hossain, Md Mustafizur Rahman and Ataur Rahman Pradhan. Prior to the new assignment, Zahid was... Full story

Yen rebounds against dollar, euro in Asia

The yen climbed against the dollar and euro on Monday after hitting five-year lows last week, but analysts said the rebound will likely only be short-lived. In afternoon Tokyo trade, the dollar bought 104.30 yen, compared... Full story

Market Disclosures

Power Grid Company of Bangladesh The company has informed that the 17th AGM of the company will now be held on January 25, 2014 at 10:00am at Auditorium of Engineers Institution, Bangladesh, 8/A, Ramna, Dhaka-1000... Full story
  • Online Poll

    Do you think that the government has successfully brought back normalcy in public life after the January 5 elections?

    • Yes
    • No
    • No comment
    Ajax Loader