China data:

HSBC/Markit reading for Services PMI for December, 53.4

  • prior was 53.0

And the HSBC/Markit Composite PMI for December, 51.4

  • prior was 51.1
china 06 January 2015 pmi

Key points:

  • Business activity rises solidly at service providers, while output declines fractionally at manufacturers
  • Strongest expansion of service sector employment in 18 months, but job shedding persists at goods producers
  • Input cost inflation hits 19-month low at service providers, while costs fall sharply at manufacturers

Comments on the China Services and Composite PMI, Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC:

  • “The headline HSBC China Services PMI rose to 53.4 in December, up from 53.0 in November.
  • The solid performance was supported by another strong expansion in new business.
  • The employment index improved modestly and price pressures remain muted.
  • The services sector continued to hold up well amidst the manufacturing downturn, providing some counter-weight to the downward pressures on the economy.
  • We continue to believe that there is insufficient demand in the overall economy and more easing measures are warranted in the coming months.”