China’s November services sector activity rose to highest since April, private Caixin survey shows
- The Caixin/Markit services purchasing managers’ index (PMI) for China rose to 53.5 last month, the quickest pace since April, from 51.1 in October
- It follows rises in the official non-manufacturing PMI as well as both the official and private manufacturing purchasing managers’ indices
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Activity in China’s services sector accelerated to a seven-month high in November, the latest in a series of data which hints at short-term stabilisation in the economy, a private survey showed on Wednesday.
The figure stayed above the 50-point mark that separates growth from contraction in the sector on a monthly basis.
“The reading indicates a recovery in activity across the services sector,” said Zhengsheng Zhong, director of macroeconomic analysis at CEBM Group, an affiliate of Caixin.
“The gauge for new business picked up from a recent low in October with a solid rebound in the measure for new export business, indicating domestic and foreign demand both improved.
China’s economy continued to recover in November, as domestic and foreign demand both improved. But business confidence remained subdued, reflecting the impact from uncertainties generated by the China-US trade conflicts
“China’s economy continued to recover in November, as domestic and foreign demand both improved. But business confidence remained subdued, reflecting the impact from uncertainties generated by the China-US trade conflicts. That will restrain a recovery in economic growth. The trade dispute is the major reason behind the slowing economic growth this year, and will become a key factor affecting the stabilisation and recovery of China’s economy next year.”
Also on Wednesday, the Caixin Composite PMI index, which combines both manufacturing and services sentiment, rose to 53.2 in November from 52.0 in the previous month, the highest since February 2018.
“The employment gauge bounced back into positive territory, reflecting easing pressure on the labour market. The measures for new orders and new export orders remained at relatively high levels, reflecting a continuous improvement in demand,” added Zhong.
“The gauge for input prices edged down, pointing to easing pressure on the costs of companies. But business confidence was still weak, with the measure for future output expectations down from October.”
