Survey Showed that the Chinese Service Sector Grew in November
For the month of November the service sector in China grew a little bit faster as shown by two independent surveys, which welcomed in spite of a run of underwhelming data that is still likely to allay concerns on the softening of the Chinese economy. There are encouraging reports that the service sector is creating more jobs than factories and is contrast sharply with the data that suggested growth in the manufacturing sector industry which slid to its lowest in November.
This pushed economists to predict that the country will be cutting interest rates once again in the following months after doing it last November 21 to pushed the growth for the second largest economy. Plus any bottoming out in the sagging housing market will unlikely lead to a solid rebound for next year.
Accounting for 46 percent of the economy in 2103, the country’s service sector weathered the growth slowdown better than factories which made it the bigger driver of activity for the coming year rather than the manufacturing sector. Plus hurt by a slowdown in the housing market which slowed down domestic demand and investment paired with unsteady exports. Analyst said that the Chinese economy is being forecasted to be headed towards its worst slowdown in 24 years as annual growth is said to be at 7.4 percent.
While others said that the rate cut issued by policy makers could dip the fourth quarter growth below 7 percent even with fiscal and monetary policy support measures for the year. As downside pressure on the economy still persists further policy will be seen to ease in the coming weeks.