Service sector avoids sharp downturn: Survey

New orders and business optimism pushed growth in China’s service sector to a five-month high, according to a survey from HSBC, Reuters reported. The Markit/HSBC Services Purchasing Managers’ Index (PMI) climbed to 52.8 in August after seasonal adjustments, up from July’s 51.3 and the highest since March. The reading was well above the 50 level that demarcates an acceleration in activity from a slowdown, although a sub-index for employment shrank. Qu Hongbin, an HSBC economist, cited new business growth as the key driver of the index and expected growth momentum of the services sector to be sustained in future.