China services activity slows to three-month low in October
China's services sector expanded at its slowest pace since July, with a private survey showing the PMI falling to 50.8. Business confidence eased amid rising costs and fierce competition, though new export business grew for a sixth consecutive month.
A private-sector survey released on Wednesday showed that China's services activity expanded at its slowest pace since July in October, with business confidence easing as firms grappled with fierce competition and rising costs.
The RatingDog China General Services Purchasing Managers' Index (PMI) fell to 50.8 in October from 51.6 in September, according to the survey. While remaining above the 50 mark that separates growth from contraction, the reading marked its weakest since July.
New business continued to grow at a rate broadly unchanged from September. New export business rose for the sixth straight month, extending the longest growth streak seen since 2024. Services firms continued to add both full- and part-time staff to cope with existing workloads.
However, increased competition led services firms to lower their average selling prices for the second consecutive month. The week-long Golden Week holiday offered little support to prices. Input prices increased at the quickest pace in five months, driven by higher costs for input materials, fuel and wages.
Business confidence slipped to its lowest since July, with firms citing concerns over rising input prices and heightened competition, the survey found.