People eat at a restaurant in Beijing, China, September 5, 2023.Reuters/Tingshu Wang/File photo Obtaining license rights
BEIJING, Dec 5 (Reuters) – China’s services activity expanded at a faster pace in November as new business turnaround was the best in three months amid reports of solid market conditions That’s what a private investigation showed on Tuesday.
The findings paint a mixed picture for the vast services sector, with an official survey last week showing the sector contracted unexpectedly for the first time since December, prompting calls for further stimulus. There is.
The Caixin/S&P Global Services Purchasing Managers’ Index (PMI) rose to a three-month high of 51.5 in November from 50.4 in October, but remained weaker than the long-term series average. Ta.
“Both the supply and demand for services expanded as the market recovery continued,” said Wang Zhe, an economist at Caixin Insight Group.
Along with the better-than-expected Caixin manufacturing PMI, the world’s second-largest economy is reassuring with steady growth in consumer spending, steady improvement in industrial production, and rising market confidence, Wang said. He said he is showing signs of recovery.
Analysts say differences in the size of the survey and the composition of companies surveyed could explain the discrepancy between Caixin and official PMI measurements.
The Caixin/S&P composite PMI, which includes both manufacturing and services, rose to 51.6 from 50.0 in October, the highest level since August.
Service providers in November expressed optimism about business activity over the coming year, with positive sentiment rebounding for the first time in five months.
But Louise Lu, chief economist at Oxford Economics, said that although China enters 2024 with relatively loose policy settings, confidence in the country’s private sector is being held back by real estate pessimism.
Real estate sales, investment and house prices continued to decline in October, increasing pressure on authorities to step up efforts to prevent the spread of the virus to the broader financial sector.
The country’s central bank chief last week urged that monetary policy remain accommodative to support growth, but that structural reforms be taken over time to reduce the economy’s dependence on infrastructure and real estate.
Employment fell for the first time since early 2023 as some companies remained cautious in hiring, according to a Caixin service industry survey.
In November, input cost inflation slowed further across China’s services sector.
“China is no longer the last spender in the global economy, so we shouldn’t expect strong reflation,” said Lu of Oxford Economics.
Reporting: Ellen Zhang and Ryan Woo Editing: Shri Navaratnam
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