Chinese Service Sector Growth Accelerates In October

(RTTNews) - China's non-manufacturing sector expanded at a faster pace in October, a combined survey by the China Federation of Logistics and Purchasing and the National Bureau of Statistics revealed Sunday.

The official purchasing managers' index (PMI) for the service sector moved up to 56.3 in October from 55.4 in September. In August, the score was 53.9. A PMI reading above 50 indicates activity in the sector is increasing, while one below 50 shows contraction.

New orders in the service sector grew further in October, but to a lower extent than in the previous month. Input price inflation faced by service providers eased modestly. Output prices increased for the sixth consecutive month.

Looking ahead, non-manufacturing firms expect their business conditions to improve in the next three months.

Financial research firm Markit Economics will be releasing a separate survey of the Chinese service sector on Tuesday.

On Friday, survey data released by the bureau showed that China's manufacturing growth hit an 18-month high in October as firms increased production. The PMI for the factory sector rose to 51.4 from 51.1 in September.