China services PMI hits six month high
October 3, 2013, 5:09 am

The services PMI hit a six month high on growing demand and government restructuring policies [Xinhua Images]

The services PMI hit a six month high on growing demand and government restructuring policies.

A PMI reading of more than 50 per cent indicates expansion in non-manufacturing activity, while a reading below 50 per cent indicates contraction.

The index was released by China’s National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) on Thursday.

“The index reflected strong growth in consumption services represented by retail thanks to the holiday factor in September. It also showed the restructuring policies had boosted demand in the service sector,” said Cai Jin, vice chairman of the CFLP.

The non-manufacturing PMI covers sectors including service, construction, software, aviation, railway transport and real estate.

The sub-index for new orders rose to 53.4 per cent in September, up 2.5 percentage points from August.

The data came after Tuesday’s official release of China’s monthly manufacturing PMI, which set a 17-month high to 51.1 per cent in September from 51 per cent in August.

The Chinese government is trying to implement a more active opening-up strategy as shown by the recent launch of the Shanghai Free Trade zone.

The FTZ in the mainland is being seen as one of China’s more daring push to economic reforms.

“The establishment of the Shanghai free-trade zone is a significant move for China to conform to new trends in the global economy and trade,” Commerce Minister Gao Hucheng said.

Restrictions on foreign investment will be eased inside the Shanghai FTZ and interest rates will be set by markets.

Source: Agencies