China’s services sector quickens to 53.8 points in November: Caixin PMI

The Caixin/Markit services purchasing managers’ index climbed 3.0 points from October’s 50.8 points to 53.8 points in November.

Nanjing Road, the shopping district in Shanghai
Source: iStock

China’s services sector rose at the quickest pace in five months for November, beating expectations as businesses registered an increase in new orders.

The Caixin/Markit services purchasing managers’ index (PMI) climbed 3.0 points from October’s 50.8 points to 53.8 points in November, much higher than the 50-mark that separates growth from contraction. Economists had expected the sector to perform at 50.8 points for last month.

November’s performance comes after a 13-month low in October, suggesting an increase in domestic demand as the year-end festivities kick in.

New business orders rose to 52.5 points in November, from 50.1 points the previous month. Firms hired more staff, with the employment sub-index at an expansionary mode of 50.7 points.

Business confidence for the next 12 months however, was pessimistic, as it slipped to a four-month low of 56.1 points.

China has been putting a greater emphasis on the services sector, to ease on its traditional dependence on manufacturing and investments.

On Monday, China’s Caixin manufacturing PMI edged up slightly from October’s 50.1 points to 50.2 points for last month. The number was better-than-expected compared to a flat forecast from economists who factored in weaker numbers considering the trade effects caused by the United States and China tariff war.

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