Caixin China Oct services PMI strongest in 4 months

The Chinese services sector activity rose at the fastest pace in four months during Oct, a latest report from Caixin showed on Thursday.

Caixin China services PMI came in at 52.4 in Oct versus 52.0 last, and almost bang on expectations of an increase to 52.5 points. Total new order growth strengthened at the beginning of the fourth quarter, with both sectors reporting an improvement in underlying market conditions and a subsequent rise in customer demand.

While Caixin China Composite PMI data (both manufacturing and services) grew at the fastest pace since early 2013 during October. The Composite Output Index rose from 51.4 in September to 52.9 in Oct.

Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group noted, “The headline Caixin China General Services PMI for October reached 52.4, edging up 0.4 from the previous month. Most indexes show mild improvements from their September readings, except the index for price charged, which fell slightly compared to the previous month.”

“The Caixin China Composite Output Index for October reached 52.9, up 1.5 from the reading for September and marking the highest level in over three years. The growth was mainly due to a faster increase in manufacturing output.”