China services gauge sees mild recovery in October
An independent gauge of China’s services sector enjoyed a partial recovery in October after falling to a 21-month low a month prior.
The Caixin-markit services purchasing managers’ index came in at 51.2 in October, up from 50.6 in September and climbing further above the 50-point line separating growth from contraction. New business growth was modest, however, while business expectations for the coming 12 months picked up slightly, ft.com reported.
The gains for the gauge were the only marked improvement among October Purchasing Managers’ Indexes (PMI) readings, both official and independent. The Caixin manufacturing PMI, which like the services reading focuses on smaller and private companies, was unchanged at 51 last month. Official gauges, published by China’s National Bureau of Statistics and which focus on larger, state-run enterprises, both deteriorated in October. The official manufacturing PMI dipped to 51.6, while a sub-index for services fell to 53.5.
Taken together the latest round of readings suggests a limited recovery for private services companies at the outset of the third quarter as conditions worsened for state-run companies generally.
The improvement for private services firms was not enough to offset static growth from private manufacturers, however, as a composite Caixin PMI covering both sectors dipped to 51 in October, 0.4 points lower from September’s level and coming in at the weakest level since June 2016.
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