There was an increase in service sector activities in China in October.
Caixin Media Co. According to the services PMI report compiled by and S&P Global, service sector activities in China continued to remain in the expansion zone for the tenth consecutive month in October. The Caixin services purchasing managers’ index (PMI) rose to 50.4 from 50.2 in September.
“Market sentiment was less optimistic,” said Wang Zhe, senior economist at Caixin Insight Group, adding that service providers were concerned about the outlook for the economy, with an indicator measuring expectations for future activity falling to the lowest level since March 2020.
Despite the long Golden Week holiday in early October providing a boost to tourism, new orders grew at the slowest pace in 10 months, according to the survey. This may reflect consumers’ increasing caution about spending while on holiday.
“The services sector, which is largely associated with the young population, has recovered by 90%, returning to pre-Covid-19 levels,” said Xing Zhaopeng, Senior China Strategist at ANZ. “It does not seem possible to see a greater than expected recovery in the sector,” he said.