China's Caixin Services PMI for Oct. 50.4 versus 51.2 estimate

<ul><li>Prior month 50.2</li><li>Services PMI 50.4 versus estimate of 51.2</li><li>Composite PMI 50.0 versus 50.9 previously</li></ul><p>Details:</p><ul><li><p>China's services activity expanded slightly faster in October at 50.4 versus 50.2 last month but below the estimate of 51.2, </p></li><li><p>Sales in the services sector grew at the softest rate in 10 months, and employment remained stagnant, while business confidence decreased.</p></li><li><p>The services sector accounts for approximately 48% of jobs in China.</p></li><li><p>The Caixin/S&amp;P Global services purchasing managers' index (PMI) increased to 50.4 in October, up from September's nine-month low of 50.2. However, the pace of expansion was slower than in the first half of the year.</p></li><li><p>A reading above 50 indicates expansion, while below 50 indicates contraction.</p></li><li><p>New orders in the services sector grew at the weakest pace in 10 months, partly offset by a boost from increased travel during the National Day holiday.</p></li><li><p>Foreign demand for Chinese services improved, but the slowdown in sales growth led to cautious hiring practices. Employment in the sector remained unchanged in October.</p></li><li><p>Business optimism declined for the fourth consecutive month and was at its lowest level since March 2020.</p></li><li><p>Prices charged by services companies increased as they tried to pass on higher input costs to customers, although the rate of input inflation slowed down.</p></li><li><p>The composite PMI, which includes both manufacturing and services, declined to 50.0 from 50.9 in September, the lowest reading since December 2022.</p></li><li><p>Concerns exist about the weak property sector, declining travel demand, local government debt, and geopolitical tensions affecting China's economic outlook, despite better-than-expected growth in the third quarter.</p></li></ul>

This article was written by Greg Michalowski at www.forexlive.com.