Why China’s Services PMI Fell in September 2017
China’s services PMI in September
According to data provided by Markit Economics, the Caixin China Services PMI (Purchasing Managers’ Index) stood at 50.6 in September 2017 compared to 52.7 in August 2017. It didn’t meet the market estimate of 53.1.
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China’s service sector improved at a slower pace in September 2017, the slowest rate since December 2015. The services PMI included the following:
- Production output showed weaker improvement in September 2017 compared to August 2017.
- New business orders and export orders slowed down in September 2017.
- Employment in the service sector rose at a slower pace in September 2017.
Overall, the service industry in China (ASHR) (FXI) weakened in September 2017. In the last year, the consumption pattern has changed. China’s economy, which was mostly driven by manufacturing activity, showed some transition in economic activity in the last year.
In the present scenario, Chinese consumers are more optimistic about the service industry. They’re also becoming more particular about the services they’re using. However, rising political uncertainty affected demand in the service sector in September 2017.
Performance of major indexes in September
The Deutsche X-trackers Harvest CSI 300 China A ETF (ASHR), which tracks the performance of China, fell 0.70% in September 2017. The iShares China Large-Cap (FXI), which tracks the performance of China, fell 0.50% that same month.
In the next part of this series, we’ll analyze the performance of China’s retail sales in September 2017.