Service index suggests weak GDP recovery

NON-MANUFACTURING activities in private and export-oriented companies in China deteriorated again in October, indicating an economic recovery is still weak, according to an HSBC survey.

The Business Activity Index, a gauge of operating conditions in these companies in the service industry, fell to 53.5 last month from 54.3 in September, an HSBC report said yesterday. A reading above 50 signals expansion.

The lower reading signaled a slower pace of growth in service activities, the report said, noting outstanding business fell at the quickest pace in two years.

"Despite growth in service activity moderating, the Chinese economy is gradually bottoming out as earlier easing policies are filtering through and boosting domestic demand," said Qu Hongbin, chief economist for China and co-head of Asian economic research at HSBC.

Recommended Features: [Special]'Made in China' Revisited From 'Made in China' to 'Created in China' A Journey to Cultural Renaissance The Vision of A Pillar Industry China: A Fast-growing Force in IPR IPR in China: Local Roots Bearing Global Fruits IPR in China: Causes for the Thriving Cause Cultural Industry: Commercializing Kung Fu Unlocking the Goldmine of China's Sports