China service sector PMI falls to 50.8 in October, slowest in three months
China's services purchasing managers' index fell to 50.8 in October from 51.6 in September, the slowest expansion in three months, according to S&P Global. New business and export growth eased, while firms added staff amid reduced backlogs. Input costs rose at the fastest pace in five months.
China's services sector purchasing managers' index (PMI) fell to 50.8 in October, down from 51.6 in September, marking the slowest expansion in three months, according to S&P Global data. The decline was attributed to capacity constraints.
New business continued to expand at a relatively fast pace, though the growth rates for both new business and new export business moderated slightly. To cope with current workloads, services firms increased both full-time and part-time staffing. Outstanding business volumes fell for the first time in about a year, with companies reporting a reduction in backlogs and benefiting from efficiency gains driven by artificial intelligence.
Amid intensifying competition, services firms cut selling prices for the second consecutive month, although the pace of reductions slowed. Input costs including materials, fuel and wages rose, pushing input prices to their fastest growth rate in five months.
The composite PMI, which combines services and manufacturing, fell to 52 in October from 52.4 in September, with overall production and business activity posting its slowest growth in three months. While manufacturing accelerated its expansion, it was insufficient to offset the slowdown in the services sector.