China’s services sector activity expands at faster pace due to rising demand, but inflation pressures loom
- Caixin/Markit services purchasing managers’ index (PMI) rose to 53.8 from 53.4 in September
- On Sunday, China’s official non-manufacturing PMI fell to 52.4 in October from 53.2 in September
Activity in China’s services sector expanded at a faster pace in October, buoyed by robust demand, although rising inflationary pressures weighed on business confidence for the year ahead, a private survey showed on Wednesday.
Analysts say the services sector, which has been slower to recover from the coronavirus pandemic than manufacturing, is more vulnerable to sporadic virus outbreaks in the country, clouding the outlook for the much anticipated rebound in consumption in the months to come.
China’s leisure and tourism businesses have been feeling the heat from the country’s zero tolerance strategy to contain infections since late October. Cities with cases, or those with concerns about the virus, have closed entertainment venues, restricted tourism or delayed cultural events.