3 November 2016


China’s services sector grew at the strongest pace in four months in October as new business picked up, encouraging companies to hire more workers, a private survey showed.

The findings, along with upbeat official factory and services readings earlier this week, add to the view that the world’s second-largest economy is on a steadier footing.

Beijing is increasingly counting on the services sector to create jobs and drive growth as it looks to shift its economic model more toward consumption from a traditional reliance on investment and exports.

The Caixin/Markit services purchasing managers’ index (PMI) rose to 52.4 in October on a seasonally adjusted basis from 52.0 in September, posting the strongest reading since June.

1 November 2016


The Caixin manufacturing PMI soared to 51.2, a full point above the expected 50.2, and followed the semi-official China Federation of Logistics & Purchasing (CFLP) manufacturing PMI for October also at 51.2, data released on Tuesday showed, beating an expected 50.4, as the CFLP non-manufacturing PMI, rose to 54.0 from 53.7 in the previous month.

The CFLP noted confidence has gained.

“Gains in all the sub-indexes, except new export orders and import orders, suggest companies’ confidence is broadly recovering, and production activities are tending to recover fully,” Zhang Liqun, a government economist advising CFLP, said in the statement. “Although there are external uncertainties, economic growth is not expected to fall within the year.”

For Caixin, the production figures stood out.

“Stronger growth in production supported the higher headline index reading in October. Furthermore, the latest increase in output was the fastest since early 2011,” Caixin said.