PT Solid Gold Berjangka | China’s Services Activity Picks Up Slightly in Oct – Caixin PMI

03:21 03 November in Commodity, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP

Solid Gold Berjangka | The private-sector survey mentioned in the news article provides insights into the state of China’s services sector for the month of October. Here are some key points from the article:

  1. Services Sector Growth: China’s services sector, which contributes significantly to the country’s employment, expanded at a slightly faster pace in October. The Caixin/S&P Global services Purchasing Managers’ Index (PMI) for October was 50.4, up from September’s nine-month low of 50.2. A PMI above 50 indicates expansion in the sector, while below 50 indicates contraction.
  2. Slowdown in Growth: Despite the expansion, the pace of growth in the services sector remained slower compared to the first half of the year.
  3. Employment and Business Confidence: Employment in the services sector stagnated in October, which is a change from the previous eight months of expansion. Business confidence also declined due to concerns about the sustainability of the industry’s growth.
  4. Household Income and Job Market: Analysts noted that sluggish household income growth and an uncertain job market are raising questions about the long-term sustainability of the services industry’s growth.
  5. New Orders: New orders in the services sector grew at the weakest pace in 10 months, which may be attributed to a slowdown in sales growth.
  6. Foreign Demand: Foreign demand for Chinese services improved, likely due to an increase in overseas visitors.
  7. Input Costs and Prices: Services companies raised prices to pass on higher input costs to customers, but the rate of input cost inflation was slower compared to previous months.
  8. Composite PMI: The Caixin/S&P composite PMI, which includes both manufacturing and services activities, declined to 50.0 in October, marking the lowest reading since December 2022. This suggests that the market conditions for manufacturing were more sluggish compared to the services sector.
  9. Economic Outlook: While China’s economy had better-than-expected growth in the third quarter, there are concerns about the weak property sector, fading demand for travel, local government debt, and geopolitical tensions that may affect the economic outlook.

Overall, the data from this survey indicates some challenges and uncertainties in China’s services sector, with concerns about employment and business confidence, and a slowdown in new orders and sales growth. These factors may have implications for the broader Chinese economy.


PMI PMI China ekonomi China Caixin PMI Caixin China