BEIJING, Jan. 7 (Xinhuanet) -- China's services sector becoming increasingly more important compared to the country's manufacturing sector these days. That's evident in the monthly PMI numbers where activity in the services sector is now consistently outpacing growth in Chinese factories. But with so many global uncertainties in our interconnected world right now, can China's services sector maintain its momentum?
Finally, a bright spot for China's weakening economy. After a rash of sluggish economic data, a private survey shows the country's service sector grew at its fastest pace in three months.Known as flash services PMI the survey shows activity picked up to 53.4 in December as strong new orders propelled gains. The index holding well above the 50 level which separates growth from contraction.In stark contrast, a twin survey which measures China's mammoth manufacturing sector shrank in the same period.
China's economy ended 2014 on a weak note with expectations growing that officials will roll out more stimulus measures. But while the nation looks set to mark its slowest pace of growth in nearly a quarter of a century, the benchmark Shanghai index has soared to more than five-year highs.
"People have still got that fear factor about how bad things are. So in some respects, this type of growth that we've got at the moment is a reasonably clean type of growth. It's not with all of the other trimmings of excesses that we've seen in the last decade. So I know it looks pretty bad on the headline numbers, but I think that's the reality check. That's what it's going to be like for the next sort of five years. It's going to be of a subdued level of growth, but a lot better quality," said Sean Darby of Jefferies.
However China's economy revs or slows in coming weeks, the focus is now clearly on the force of potential government stimulus measures. And as global markets start 2015 on a shaky footing, that call for action may grow louder.
(Source: CNTV.com)
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