A private gauge of China’s services activities edged up in October, remaining in expansionary territory for 10 months in a row as Beijing ramped up efforts to shore up economic growth.
The Caixin services purchasing managers index climbed to 50.4 in October from September’s 50.2 which was the lowest of the year, Caixin Media Co. and S&P Global said Friday.
The 50 threshold separates activity expansion from contraction.
The subindex measuring business activity recorded the second-lowest reading this year, with the gauge for total new business the lowest in 2023, according to Caixin.
Improving external demand kept the measure for new export businesses staying above 50 for a second month, partly thanks to easing travel restrictions, which attracted more tourists from overseas, said Caixin.
Employment remained stable with a gauge of 50, but ended an eight-month expansion streak, while the subindex for outstanding business stayed in expansionary territory, marking the highest reading since January, according to Caixin.
“Market sentiment was less upbeat”, said Wang Zhe, senior sconomist at Caixin Insight Group. “While remaining in expansion, the gauge for service providers’ expectations about future activity declined for the fourth consecutive month to a new low since March 2020. “
“Service providers were concerned about the economic outlook”, Wang said.
The Caixin gauge pointed in a different direction from a competing official nonmanufacturing PMI, which covers both service and construction activity. China’s official nonmanufacturing PMI fell to 50.6 in October, compared with 51.7 in September, according to the National Bureau of Statistics.
The subindex tracking service activity declined to 50.1 from 50.9 in September, while the construction subindex dropped to 53.5 in October from 56.2 in September.
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