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China Services PMI Slides To Lowest Since Aug 2011; 2nd Lowest On Record

Tyler Durden's picture


At 50.7, HSBC's China Services PMI is 0.1 above its previous record low from August 2011. In contrast to the manufacturing side of the economy - which lost jobs at the fastest rate since March 2009 - the services side saw a modest rise in employment but, as HSBC notes, as part of efforts to boost sales, both manufacturers and service providers cut their selling prices in January at the strongest rate of discounting since June 2012. The backlog of work for service providers dropped for the first time since April 2013 and new order growth was the slowest in 7 months.


HSBC's Chief Economist noted: “The slower expansion of services activities in January reflected soft manufacturing growth and the impact of Beijing's latest measures to curb official extravagance." Need more graft and expensive watches stat!

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Thu, 02/06/2014 - 22:05 | 4410282 Cognitive Dissonance
Cognitive Dissonance's picture

I can't hold her Captain. She's breaking up, she's bre..........

Thu, 02/06/2014 - 22:14 | 4410321 zorba THE GREEK
zorba THE GREEK's picture

China services PMI is down because  of all the Oriental massage parlors that

are opening up in the U.S. China is exporting so many service personnel, they

are losing productivity over there. Happy ending anyone?

Thu, 02/06/2014 - 22:31 | 4410368 Wait What
Wait What's picture

it'd be cute if you were kidding, but I've counted 23 such 'massage' parlors on the main artery that cuts across the town i live in. then again, what consumer can complain about deflation in the world's oldest profession?

Thu, 02/06/2014 - 22:23 | 4410347 aVileRat
aVileRat's picture

Odd seeing that the Chinese turned back on the lending pump and we have Chinese new year starting.

Maybe the PBOC attempting to get their hands around the regional/municipal stat-padding ?



Fri, 02/07/2014 - 01:01 | 4410717 ReactionToClose...
ReactionToClosedMinds's picture

that's my guesstimate as well.   If so, look out Yen/Nikkei/Abenomics (sadly I 'balanced' and only sold half my Wisdom Tree hedged japan ..... I wanted to sell it all but 'prudence' dictated I leg out proportionately) ...and not postive knock-ons to USA.

I read a fine piece that essentailly reminded me/reader....China has control of its capital accounts for a reason ........ so they are taking advantage now ....some medicine as they purge the previous regime's cronies/competitors, etc.

Thu, 02/06/2014 - 22:07 | 4410289 newsguy68
newsguy68's picture

Federal Reserve Issues Warning, Bank Drills, Possible False Flag 



Thu, 02/06/2014 - 22:19 | 4410334 Dr. Engali
Dr. Engali's picture

Interesting. Thanks.

Thu, 02/06/2014 - 22:07 | 4410293 fonzannoon
fonzannoon's picture

I can't evern remember my QE's anymore. Tyler was August 2011 the end of QE2 and right before the fed had to scramble to Operation twist when the market shit it's pants?

Fri, 02/07/2014 - 01:03 | 4410725 ReactionToClose...
ReactionToClosedMinds's picture

lordy ,,,, Operation Twist, remember that, an eternity ago ....... QE Light ....then they went whole hog...and what has it gotten them in the end .... very little except a tricky trap to extricate oneself from

Thu, 02/06/2014 - 22:13 | 4410320 Dr. Engali
Dr. Engali's picture

Damn if only we could figure a way to print some sales.

Thu, 02/06/2014 - 22:22 | 4410339 miker
miker's picture

Future data will be asymptotic to 50.  50.1, 50.03, 50.005, 50.0000000001. 

They will never report a number below 50. 

Fucking moron chinks.

Thu, 02/06/2014 - 22:30 | 4410369 gwar5
gwar5's picture

So who's going to bail out the global economy now? 

Fri, 02/07/2014 - 00:59 | 4410711 John Law Lives
John Law Lives's picture

TPTB can simply manipulate USDJPY and pump all risk assets forever.  It seems that drives markets as of late.


Thu, 02/06/2014 - 23:07 | 4410411 AdvancingTime
AdvancingTime's picture

Fast growth tends to mask flaws and weakness within a system, and China has been growing like a weed for years. To make things worse many of the investment decisions were driven by politics. This has created massive overcapacity. Money has been poorly allocated and often shoveled into deep holes like ghost cities and bridges to nowhere.

Currently a 6.6 trillion dollar spending spree used as stimulus to combat global economic slowdown is coming back to haunt China. This has greatly expanded credit and created huge overcapacity during the past five years. A massive debt crisis now looms in the offing. Companies are now struggling to repay loans on newly built factories that sit idle from lack of demand. More on this subject in the post below,


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