Chinas August HSBC services PMI rebounds to 17-month high

Written by Reuters | Beijing | Updated: Sep 4 2014, 07:22am hrs
Chinas services sector expanded at the strongest pace in 17 months in August as new business rebounded after a sharp slowdown in July, a private survey showed on Wednesday.

The services purchasing managers' index (PMI) compiled by HSBC/Markit jumped to 54.1 in August the strongest reading since March 2013 from a nine-year low of 50.0 in July.

A reading above 50 in PMI surveys indicates an expansion in activity while one below that threshold points to a contraction. Earlier on Wednesday, China's official PMI services index for August was reported as 54.4, compared with July's six-month low of 54.2. Activity in China's vast factory sector cooled in August as foreign and domestic demand slowed, two surveys showed on Monday, spurring new calls for more policy easing to prevent the economy from stumbling once more.