Activity in China’s services sector rebounded in August after a drop in July, two surveys showed on Wednesday, offseting factory-sector weakness and letting the government stick with its “targeted” policy stance to keep growth on track.
The government is determined to achieve its 7.5 percent economic growth target for 2014 to keep employment stable and rein in financial risks while pushing long-term reforms to put the world’s second-largest economy on a more sustainable footing.
The services purchasing managers’ index (PMI) compiled by HSBC/Markit jumped to 54.1 in August – the strongest in 17 months – from a nine-year low of 50.0 in July. A reading above 50 in PMI surveys indicates an expansion in activity while one below that threshold points to a contraction. Also, the official non-manufacturing purchasing managers’ index (PMI), published by the National Bureau of Statistics, rose to 54.4 from July’s six-month low.