China’s Services Sector PMI Lowest in Two Years
Created: 2012-10-04 10:02 EST
China’s service sector has slowed to its lowest point since November 2010. The purchasing manager’s index has fallen to 53.7 points in September, down from 56.3 in August, that’s according to figures released Wednesday by the country’s National Bureau of Statistics.
While a figure above the 50-poin mark indicates growth, rather than contraction, the latest data shows that China’s service sector is starting to feel the effects of the slowing manufacturing sector.
The manufacturing sector contracted for the second month in September, with the PMI at 49.8 points. Now the ripple effect is reaching related services. Construction and transport services have weakened. There is also a drop in new orders.
China’s export dependent economy has been suffering under the global slowdown. The country’s regulators have tried to spur domestic demand by easing monetary policies, including introducing two interest rate cuts in June and July.