China Caixin Services October PMI 52.0 (50.3 prior)

Caixin Services PMI for October comes in at 52.0

• expected 50.5, prior 50.3

Composite 51.9

• prior 50.3

This is the final of the China PMIs for October. Earlier:

• Official Non manufacturing 50.2
• China Caixin Manufacturing PMI for October 50.3

From the report, in brief on the services result today:

• Business activity and new orders grew for the 22nd month, with overseas demand increasing for the 14th consecutive month.
• Output prices remained stable as price hikes at some firms were balanced by discounts at others.
• Future activity expectations rose nearly 3 points, reaching a five-month high, with businesses optimistic about near-term economic conditions.
• Employment grew slightly as new orders prompted companies to increase staffing, marking two months in positive territory.
• Work backlogs increased slightly for the third consecutive month.
• Input costs rose, though at a slower pace, due to higher energy and raw material prices, while output prices remained stable.

And, on the Composite:

• Composite PMI marking 12 consecutive months of expansion, with services outperforming manufacturing.
• Manufacturing workforce contraction weighed on overall employment, despite growth in services.
• Prices remained stable with a slight increase in service sector input costs.
• Market optimism rebounded from September’s record low.
• Following Politburo’s focus on economic challenges in late September, new policies aimed at stabilizing demand and improving optimism were introduced.
• The labor market remains strained, and prices are low. Achieving 2024 growth goals will rely on a sustained rise in consumer demand, with a focus on boosting household income.

This article was written by Eamonn Sheridan at www.forexlive.com.