Market News
February 4, 2013 @ 10:35 am

China services sector shows expansion

Data from China over the weekend showed that the economy’s increasingly important services sector expended in January, according to the Beijing-based National Bureau of Statistics and China Federation of Logistics & Purchasing from a statement yesterday. A reading above 50 indicates expansion.

China’s official purchasing managers’ index (PMI) for the non-manufacturing sector rose to 56.2 in January from 56.1 in December. The rate of growth was at the fastest pace since August due to gains in retailing and construction.

The uptick may be marginal but it gives some optimism for the recovery in the world’s second-largest economy. Strength in services may assist a shift to a consumption-driven economy.

In reaction to the data, regional markets rose during Monday’s trading. The Shanghai stock index climbed 0.4 percent in early trading while the MSCI Asia Pacific Index of shares gained 0.7 percent .

China’s economy grew 7.9 percent from a year earlier in the last three months of 2012, which was the first acceleration in two years. The rate of growth could very well pick up to 8.1 percent in the first quarter, according to some economists’ forecasts.

 

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