China’s services industry expanded the least in more than a year, underscoring a slowdown that spurred the Asian Development Bank to lower its 2012 regional growth estimate and caused a slide in Australian coal exports.
The purchasing managers’ index from the Chinese government and logistics federation fell to 53.7 in September from 56.3 the previous month, a report showed today, while Australia recorded its widest trade deficit since March 2008 in August. The ADB today forecast Asia excluding Japan will expand 6.1 percent this year, the slowest pace since 2009.
China’s manufacturing contraction persisted last month, Japanese industrial companies grew more pessimistic and South Korean exports fell, reports showed this week, signaling Asia’s biggest economies have yet to reverse their slowdowns. All of Asia’s eleven most-traded currencies except the Indonesian rupiah advanced against the dollar in the past three months as policy makers took steps to spur growth.
China will expand 7.7 percent this year, less than the previous forecast of 8.2 percent, the ADB said. India’s economy will grow 5.6 percent in the year ending March 31, it said, compared with the earlier estimate of 6.5 percent.