China's services sector is recovering, according to the HSBC Purchasing Managers' Index (PMI) for September, up to 54.3, from its lowest point for the year in August at 52.0, Reuter's reported today.
"This is likely an indication of a gradual improvement of domestic economic conditions due to the earlier easing measures and the stronger consumption demand in the run-up to the Golden Week holiday," said Hongbin Qu, HSBC's chief economist for China, as quoted by Reuters.
Preliminary data released today from the National Tourism Administration shows record travel during Golden Week, an eight-day holiday stretching from Sept. 30 to Oct. 7 this year. The number of tourists visiting the country's 119 major attractions increased by nearly 21 percent over last year's holiday, at 34.25 million, with accompanying income from tourism increasing by nearly 25 percent.
The HSBC report contrasts with China's National Bureau of Statistics PMI released Oct. 3 which shows the weakest level for the non-manufacturing sector in nearly two years, attributed to the slow manufacturing growth feeding into the services sector.
Reuters explained the discrepancy by saying the official survey "tends to reflect larger state-owned firms."
Purchasing Managers' Indices (PMIs) are monthly overviews of individual countries' economies. HSBC economists "on the ground" in 12 global emerging markets utilize data provided by Markit, the global financial information services company to compile the indices, according to the company's website.
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