China’s Caixin Services PMI unexpectedly slumps to 21-month lows in Sept
|China 's Caixin September Services PMI came in at 50.6 vs 52.7 last and 53.1 expectations.
Summary – Services and Composite PMI data
The Caixin China Composite PMI™ data (which covers both manufacturing and services) signalled a weaker expansion in total Chinese business activity at the end of the third quarter. Notably, the Composite Output Index fell from 52.4 in August to a three-month low of 51.4 in September.
The slowdown was driven by weaker increases in output at both manufacturing and services companies. A drop in the seasonally adjusted Caixin China General Services Business Activity Index from 52.7 to 50.6 in September pointed to only a marginal increase in services activity that was the slowest for 21 months. At the same time, growth in manufacturing production edged down to a three-month low.
Commenting on the China General Services PMI™ data, Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group said: “The Caixin China General Services Business Activity Index came in at 50.6 in September, the lowest since December 2015 and down 2.1 points from the previous month. Although new business rose at a slower rate last month than in August, input costs and prices charged both increased. The Caixin China Composite Output Index was 51.4 last month, the weakest since June and down 1.0 point from August. The Chinese economy generally held up well in the third quarter. However, the expansion in both manufacturing and services cooled in September, suggesting downward pressure on economic growth may re-emerge in the fourth quarter.”
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