China’s service industries strengthened in August, contrasting with declining manufacturing gauges and suggesting a transition away from factory-led growth.
The non-manufacturing Purchasing Managers’ Index (MXAP) advanced to 54.4 from 54.2 in July, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing. A separate services gauge from HSBC Holdings Plc and Markit Economics surged to a 17-month high of 54.1, from 50 in July. Readings above 50 for both gauges indicate expansion.
Chinese stocks added to gains on optimism a rebound in services growth will help offset a pullback in manufacturing and a property slump. China’s weakening real-estate market has weighed on related industries, raising concern the government will miss its expansion target of about 7.5 percent this year.