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China Services-Sector Gauge Rose at Faster Pace in October

A private gauge of China’s services-sector activity rose at a faster pace in October, signaling a further recovery of business activity at the start of the fourth quarter.

The Caixin China services purchasing managers index rose to 56.8 in October from 54.8 in September, Caixin Media Co. and research firm Markit said Wednesday.

It was the sixth straight month the index stayed above the 50 mark that separates expansion from contraction. The rate of growth was the second fastest since August 2010, Caixin said.

Total new order growth accelerated, while orders from overseas clients dipped for the fourth month in a row, according to respondents surveyed by Caixin. The gauge for new export orders remained in contractionary territory as a resurgence of the virus across a number of export markets dampened foreign sales, Caixin said.

The employment gauge hit its highest point since September 2019 and the improvement in employment was significant, said Wang Zhe, senior economist at Caixin Insight Group. Service providers were also confident about China’s effective control of the pandemic and the economic recovery in the coming year, with the gauge for business expectations rising to the highest level since April 2012.

China’s official nonmanufacturing purchasing managers index, a competing gauge, rose to 56.2 in October from 55.9 in September, the National Bureau of Statistics said earlier. The Caixin PMI is tilted more toward smaller companies, while the official gauge is weighted toward larger companies.
Source: Dow Jones

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