China’s Caixin Services PMI rose to 52 in October, the highest in 3 months.

The Caixin/Markit survey, which focuses on small private firms, follows a strong showing in official business activity indexes covering large state-owned companies. The Caixin China services purchasing managers’ index (PMI) rose to 52.0 in October, up 1.7 percentage points and hitting a three-month high. Photo: VCG

China’s Caixin services purchasing managers’ index (PMI) rose to 52.0 in October, up 1.7 percentage points to hit a three-month high, data showed on Tuesday, indicating a robust recovery in China’s services sector.

A reading above 50 indicates increasing activity, while a reading below signals contraction.

Supply and demand grew at a faster pace in October as the new orders index continued to rise, according to a Caixin survey.

The companies surveyed attributed the increase in new business volumes to improving market conditions and increased market demand.

Growth in the manufacturing and services sectors helped lift China’s Caixin PMI by 1.6 percentage points in October to 51.9, its highest level since July.

The Caixin China Manufacturing PMl index for October was 50.3, up 1.0 percentage point, returning to growth territory.

Since the end of September, a series of phased measures have been introduced to promote economic growth. Data from the Caixin China Manufacturing and Services PMI shows that market demand has stabilized after a period of decline, market optimism is recovering and the effects of the policies are beginning to emerge, said Wang Zhe, senior economist at Caixin, in the report. statement on Tuesday.

Wang noted that it is necessary to closely monitor the impact of gradual policies to stimulate economic growth in stimulating domestic demand and supporting employment.

Observers suggest that future government policies should focus on significantly increasing the disposable income of the wider population to facilitate a sustainable recovery in market demand.

As a manufacturing nation, China has seen rapid growth in its services sector, especially those related to manufacturing.

Services supporting the manufacturing sector are expanding due to the increasing complexity of the production process and expanding supply chain, Bian Yongzu, executive deputy editor-in-chief of the journal Modernization of Management, told the Global Times on Tuesday.

He noted that the development of the technology industry has contributed to the rise in PMI, with sectors such as artificial intelligence, software and chip design clearly accelerating growth. In recent years, these new growth points have become key to supporting China’s economic transition, Bian said.

The services sector could see a strong recovery as the global economy recovers and China’s growth-boosting policies take effect. The positive cycle could spur further growth in the services sector, boosting China’s overall economy, Bian said.

China’s Ministry of Commerce, as part of its ongoing efforts to implement the trade-in program for consumer goods and promote the revival of high-quality services, plans to cooperate with major consumer centers including Shanghai, Beijing and Guangzhou to launch an initiative to boost consumption in China. November, People.cn reported on Saturday. The initiative aims to increase the supply of high-quality products and stimulate consumer activity.