China registers upbeat services and manufacturing data

5 March 2013

Output from two key industrial sectors in China expanded once again last month, it has emerged.

The latest services purchasing managers' index (PMI) by Markit and HSBC for the world's second-largest economy has shown that activity in the country's manufacturing and services sectors increased in February.

In a gauge where any score above 50 is indicative of growth, the report registered a level of 51.4 for the month.

Although this represents a downward movement on the two-year high of 53.5 posted in January, such a statistic still means the PMI has now been in positive territory above the threshold for expansion for six months in a row.

This trend was attributed to factors such as the climb in both employment and new business across both the manufacturing and services industries throughout February.

Hongbin Qu, chief economist for China and co-head of Asian economic research at HSBC, commented: "We expect a continuous modest improvement of service sector growth in the coming months, thanks to the healthy labour market conditions and the ongoing recovery of manufacturing growth.”

By Asim Shah

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