China’s services activity accelerates to 3-month high in November on boost from new orders

Caixin/S&P Global services purchasing managers’ index (PMI) rose to 51.5 in November, up from 50.4 in October

Survey presents mixed picture of services sector after official gauge last week unexpectedly contracted for the first time since December last year

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Caixin/S&P Global services purchasing managers’ index (PMI) rsoe to 51.5 in November, up from 50.4 in October. Photo: Bloomberg

Published: 9:58am, 5 Dec 2023Updated: 10:00am, 5 Dec 2023

China’s services activity expanded at a quicker pace in November, a private-sector survey showed on Tuesday, as the upturn in new businesses were the best seen for three months amid reports of firmer market conditions.

The findings present a mixed picture of the vast services sector as an official survey last week showed the sector unexpectedly contracted for the first time since December last year, prompting calls for more stimulus measures.

The Caixin/S&P Global services purchasing managers’ index (PMI) rose to a three-month high of 51.5 in November from October’s 50.4, but it remained softer than the long-run series average.

“Both services supply and demand expanded, as the market continued to heal,” said Wang Zhe, economist at Caixin Insight Group.

Taken together with the better-than-expected Caixin manufacturing PMI, Wang said the world’s second-biggest economy showed signs of an encouraging recovery, with steady growth in consumer spending, solid improvement in industrial production and an uptick in market confidence.

Analysts say the different survey sizes and composition of surveyed companies might explain the discrepancy between the Caixin and official PMI readings.

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