China services PMI slumps to one-year low (by Chris Oliver)
HONG KONG (MarketWatch) -- China's services-sector activity cooled to a one-year low in August, with more businesses growing downbeat about their outlook, even as overall conditions remained moderately expansionary, according to a survey released by HSBC on Tuesday. The China services Purchasing Managers' Index eased to 52.0 for the month from 53.1 in July. A subindex that measures total new business signaled conditions were at their weakest since November 2011, while optimism among participants within the sector slumped to an eight-month low. HSBC economist Hongbin Qu said in a note accompanying the data that the Chinese economy is clearly deteriorating and that authorities need "to do more to counterbalance the external shock." HSBC said its survey found growing pessimism among respondents, with many citing rising average costs while selling prices were little changed.