China Business Confidence Drops in September

Business confidence in China’s services sector slipped in September and growth slowed, a private survey showed on Tuesday, another signal the world’s No.2 economy is finding it difficult to regain solid momentum after a protracted slowdown.

The Markit/HSBC services PMI for September dipped to 52.4 from August’s 52.8, although it was still well above the 50 line that separates expansion from contraction. A rise in new business offset a slowdown in new orders, the survey said.

The survey showed business expectations weakened sharply, with respondents citing muted demand, although conditions were still expected to improve in the next year. The expectations sub-index stood at 58.7 in September from August’s 62.0.

“The degree of confidence eased from August’s five-month high and was the second-weakest in the near eight-year series history,” HSBC said in a statement.

The government has an economic growth target of 7.5 percent for 2013, which would be the weakest rate in more than 20 years, and has repeatedly said it would accept slower growth as it tries to restructure the economy to be driven by consumer demand, rather than investment, credit and exports.

via Reuters

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