China's services growth slows to three-month low as confidence weakens
SPY•China's services PMI fell to 50.8 in October from 51.6 in September, its lowest reading since July, while business confidence also weakened. Input prices rose at their fastest pace in five months as firms faced higher costs and increased competition.
1. Activity and confidence
The RatingDog China General Services PMI fell to 50.8 in October from 51.6 in September, remaining above the 50 mark that separates growth from contraction but reaching its lowest level since July. Business confidence also slipped to its lowest since July, with firms citing rising input prices and heightened competition.
2. Costs and demand
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 quickest pace in five months, driven by higher material, fuel and wage costs.
