MNI: China FEB Services Sector Remained Strong: Caixin PMI

     BEIJING (MNI) - Growth in China's services sector remained strong in

February with both business activity and new orders rising, despite the headline

reading easing from the previous month, according to the latest survey of

purchasing managers jointly released by Caixin and Markit on Monday. 

     The Caixin Service PMI eased to 54.2 in February from 54.7 in January,

slowing from the rapid pace seen in previous four months but still marking the

second highest reading since March 2013. 

     The fall in the Caixin services index was in line with the downturn in the

official service PMI released Feb 28 by the China Federation of Logistics and

Purchasing (CFLP) and the National Bureau of Statistics (NBS). The CFLP/NBS

Services PMI fell to 54.4 from 55.3 in January. 

     Total new orders placed with Chinese service providers in February were

also solid but eased since the start of the year, according to Caixin. 

     The cost burden of service companies weakened slightly but still remains

high. The rate of input price inflation would continue its increase through the

first quarter, according to the statement. 

     The price-charged index was above 50 for six months as of February, showing

a marginal gain in charges due to higher input costs. 

     Sentiment among Chinese service providers picked up slightly from a

four-month low in January, but remained subdued in the context of historical

data, Caixin said.

--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: beijing@mni-news.com

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

[TOPICS: MAQDS$,M$A$$$,M$Q$$$,MI$$$$]