China’s Caixin November Services PMI came in at 51.9 versus 51.2 last and 51.5 expectations.
Summary – Services and Composite PMI data
The Caixin China Composite PMI™ data (which covers both manufacturing and services) indicated that growth momentum improved slightly in November. Although the Composite Output Index rose from October’s 16-month low of 51.0 to 51.6, the latest figure pointed to only a modest upturn in business activity that remained weaker than the series average. Data broken down by sector indicated that business activity growth improved across both the manufacturing and service sectors during November. In the manufacturing sector, the pace of increase picked up from October’s four-month low, but remained moderate overall. Services companies meanwhile saw the quickest rise in activity for three months, though growth was likewise modest. The latter was illustrated by the seasonally adjusted Caixin China General Services Business Activity Index increasing from 51.2 to 51.9 in November. Services companies signaled a sustained rise in new work during November.
As was the case for activity, the rate of expansion improved to a three-month record, with a number of firms indicating that new client wins and promotional activities had helped to lift overall sales. New business also increased at manufacturers, though the rate of expansion softened since October. At the composite level, growth in new orders edged up to its strongest since August.
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 rebounded for the second straight month in November to 51.9, 0.7 points higher than in October. New business expanded at a rapid pace while input costs and prices charged continued to rise. Mainly driven by the strong reading in the service sector, the headline Caixin China Composite PMI came in at 51.6 in November, 0.6 points higher than for the previous month. The Caixin PMI readings in November showed the economy has maintained stability and there was no imminent risk of a significant decline in its growth rate. But we should be cautious because the economy may come under rising inflationary pressure at the start of next year due to continued price increases.”
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