China Services Activity Expands On New Business

(RTTNews) - China's service sector continued to grow in October as new business growth accelerated despite a fall in export sales, survey data published by S&P Global showed on Wednesday.

The headline RatingDog service Purchasing Managers' Index fell to 52.6 in October from 52.9 in September.

Although the growth was the softest in three months, the sector extended the current period of expansion that began in January 2023.

New product launches and new client wins underpinned the uptick in domestic sales. However, foreign demand deteriorated moderately due to increased uncertainty regarding the global trade outlook.

The survey showed that the level of outstanding business declined for the first time since March despite an increase in new work inflow. Staffing levels decreased in October as capacity pressures eased.

On the price front, the survey showed that input prices grew again at the most pronounced pace in a year. In contrast, average charges dropped fractionally as companies opted to absorb cost increases to support sales.

Overall sentiment among service providers remained positive in October as firms expect better market conditions and plan expansion.

The composite output index posted 51.8 in October, down from 52.5 in September. However, the private sector expanded for a fifth straight month but at softer pace due to weaker increases in output across the manufacturing and service sectors.