Caixin ser­vices PMI hits 16-month high

China Daily (Hong Kong) - - BUSINESS - By WANG YIQING wangy­iqing@chi­

Busi­ness ac­tiv­ity in China’s ser­vices sec­tor ex­panded to a 16-month high in Novem­ber, according to a pri­vate survey re­leased on Monday.

The Caixin China Gen­eral Ser­vices Pur­chas­ing Man­agers In­dex, con­ducted by fi­nan­cial in­for­ma­tion ser­vice provider Markit and spon­sored by Caixin Me­dia Co Ltd, stood at 53.1 in Novem­ber, up from 52.4 in Oc­to­ber and the high­est since July 2015.

A read­ing above 50 in­di­cates ex­pan­sion in the ser­vices sec­tor.

The survey shows that com­mence­ment of new projects and in­creases in new or­ders mainly con­trib­uted to the ex­pan­sion of busi­ness ac­tiv­ity in the ser­vices sec­tor this month.

According to the survey, ser­vice en­ter­prises hired more work­ers for the third con­sec­u­tive month to sup­port their ex­pand­ing busi­ness ac­tiv­i­ties, which was the fastest pace in the past 18 months.

There was lit­tle price pressure on ser­vices providers in Novem­ber. Al­though price in­creases reached a 21-month high, they re­mained still mod­est and were be­low the longterm av­er­age level.

And ser­vice en­ter­prises’ un­fin­ished work­load in­creased for the sec­ond month in Novem­ber, though the rate of growth was lit­tle changed from Oc­to­ber.

The ex­pan­sion trend showed by the Caixin China Gen­eral Ser­vices PMI was in ac­cor­dance with that of of­fi­cial sta­tis­tics.

According to data re­leased by the Na­tional Bureau of Sta­tis­tics on Thurs­day, the busi­ness ac­tiv­ity in­dex of China’s ser­vices sec­tor stood at 53.7 in Novem­ber, up from 52.6 in Oc­to­ber and the high­est level so far this year.

In ad­di­tion, the new or­der in­dex in the ser­vices sec­tor stood at 51.2, up from 50.4 in Oc­to­ber and it was the third con­sec­u­tive month it re­mained in ex­pan­sion­ary ter­ri­tory.

Caixin China Com­pos­ite PMI, which cov­ers both the man­u­fac­tur­ing and ser­vices sec­tors, re­mained un­changed from Oc­to­ber at 52.9. It was still at a three-year high and showed a solid in­crease in China’s busi­ness ac­tiv­ity in Novem­ber.

“Price in­fla­tion, rather than a struc­tural im­prove­ment, seems to be the main rea­son be­hind the re­cent re­cov­ery of the econ­omy in gen­eral,” said Zhong Zheng­sheng, di­rec­tor of macroe­co­nomic anal­y­sis at CEBM Group, a sub­sidiary of Caixin In­sight Group.

“The econ­omy may re­main sta­ble in the fourth quar­ter, but it will still face sig­nif­i­cant down­ward pressure next year.”

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