China data:
HSBC/Markit Services PMI for July, 50.0
- prior was 53.1
- Services PMI is at the lowest since the survey began in 2005
And the HSBC/Markit Composite PMI for July. 51.6
- prior was 52.4
Key points from Markit/HSBC:
- New order growth accelerates at manufacturers, while new work rises fractionally at service providers
- Input price inflation quickens to eight-month high at the composite level
- First expansion of composite employment since March
Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC said:
- “The headline HSBC China Services PMI came in at 50.0 in July, the lowest reading since the series began in November 2005.
- Both the new business and outstanding business indices declined from their levels in June.
- The weakness in the headline number likely reflects the impact of the ongoing property slowdown in many cities as property related activity, such as agencies and residential services, see less business.
- Meanwhile, the employment and business sentiment indices remain stable.
- In the coming months, we think the service sector may get some support from the recovery in investment.
- But today’s data points to the need of continued policy support to offset the drag from the property correction and consolidate the economic recovery.”
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Note:
On the weekend we got
And last week we got:
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AUD getting sold on the poor Chinese data, donw about 10 points from prior to the release.
