China's services growth slows to three-month low as confidence weakens
FXI•China’s RatingDog General Services PMI fell to 50.8 in October from 51.6 in September, its lowest reading since July, while business confidence also weakened. Activity remained above the 50 mark that separates growth from contraction.
1. Growth and costs
New business continued to grow at a rate broadly unchanged from September, and new export business rose for a sixth straight month. Services firms added full- and part-time staff, but increased competition led them to lower average selling prices for a second month. Input prices rose at their fastest pace in five months, driven by higher material, fuel and wage costs, while business confidence fell to its lowest since July.
