Caixin China Services PMI Edges Up to 51.2, While Composite PMI Falls to 51.0 in October
Xu Wei
/SOURCE : Yicai
Caixin China Services PMI Edges Up to 51.2, While Composite PMI Falls to 51.0 in October

(Yicai Global) Nov. 3 -- The Caixin China Composite Purchasing Managers' Index (PMI) data covering both manufacturing and services pointed to a marginal increase in the Chinese business activities in early Q4. The Composite Output Index fell from 51.4 in September to 51.0 in October, signaling the weakest pace of expansion since June 2016, IHS Markit, a business and marketing information institution, said today.

In October, the softer increase in overall output was largely attributable to a further slowdown in manufacturing production growth. Output at Chinese goods producers rose at only a marginal pace which was the weakest since June.

Meanwhile, growth in the Chinese services activities picked up from September's 21-month low, but was modest overall and remained weaker than the historical average. After seasonal adjustment, Caixin China General Services Business Activity Index rose from 50.6 to 51.2 in October.

For operation prospects in the next 12 months, the optimism of manufacturers fell to its lowest in the last 3 months, while the optimism of service enterprises showed a slight improvement. However, the comprehensive optimism remained sluggish, a record low since July, IHS Markit said.

"Caixin China General Service Purchasing Managers' Index stood at 51.2 in October, up 0.6 over the previous month. The new business index dropped for the two consecutive months with the input price index and the prices charged index continuing to rise," said Zhong Zhengsheng, head of Caixin Insight CEBM Macroeconomic Research.

"Mainly dragged down by the output of the manufacturing sector, Caixin China Composite Output Index was 51.0 in October, down 0.4 from the previous month and a record low since June 2016. Caixin PMI in October saw a weak economic growth in the fourth quarter, but so long as there was no significant downside risk, monetary policies were still hard to ease," Zhong added.

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Keywords: Caixin , PMI , MANUFACTURING , INDEX , Output