China's HSBC Services PMI Slips

China's HSBC services PMI declined to 53.5 in October from 54.3 in September.

But any number above 50 signals expansion.

The composite PMI improved to 50.5 in October from 50.3 a month ago thanks to an improvement in manufacturing activity.

“Despite the moderation of services activity growth, the Chinese economy is gradually bottoming out as the filtering-through of earlier easing policy is boosting domestic demand," wrote HSBC's Hongbin Qu.  "We expect the continuation of policy easing to sustain the recovery in manufacturing sector in the coming months, which should lend additional support to growth of services sectors and consumer spending.”

Here are some key points from Markit's composite report:

· Output expands at composite level for second month in a row
· Composite new orders increase at the quickest pace in a year
· Input costs rise in both sectors

Earlier, we learned that the official services PMI number improved to 55.5 in October from 53.7 a month ago.

*SEE ALSO: 19 Crazy Things That Only Happen In China >*

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