CHINA/ Caixin China General Services PMI at 50.4 in October, below expectations

Milan, November 2023 - Business activity in China's services sector expanded only marginally in October. Low activity levels coincided with a further slowdown in new order growth, the weakest year to date, despite a faster improvement in recent export activity. At the same time, service companies took a more cautious stance on hiring, with employment levels unchanged after eight months of expansion. Expectations for next year's business outlook fell to the lowest since early 2020 due to concerns that stagnant market conditions could persist in the months ahead. With a value of 50.4 in October, the seasonally adjusted Caixin China General Services PMI index indicated an increase in service sector activity. However, the index remained close to September at 50.2 and signaled only a marginal and below-expected growth rate. The pace of expansion remained much slower than that recorded on average in the first half of the year. (mem-lf-mm)