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BEIJING (Reuters) – China’s services activity expanded at the fastest pace in three months in October, helped by early signs that Beijing’s big stimulus push was helping improve business conditions, a private-sector survey showed on Tuesday.<\/p>\n
The Caixin\/S&P Global services purchasing managers’ index (PMI) grew to 52.0 in October from 50.3 the previous month. The 50-mark separates expansion from contraction on a monthly basis.<\/p>\n
That matched the official PMI released last week, which showed non-manufacturing activity including services and construction broke back into expansion.<\/p>\n
China’s economy grew at the slowest pace since early 2023 in the third quarter, with the crisis-hit property sector showing few signs of steadying as Beijing races to reach its growth target of this year.<\/p>\n
Beijing unleashed monetary stimulus and property sector support measures in September. Soon after, a meeting of top Communist Party leaders, the Politburo, vowed the “necessary spending” to bring growth back on track.<\/p>\n
The survey showed new business increased marginally to 52.1 from 51.0 in September. However, expansion of new business inflows from abroad slipped.<\/p>\n
Capacity pressures were seen as new business added to the backlog of work. As a result, service providers raised their employment for a second consecutive month.<\/p>\n
Input price growth slowed to a three-month low, though companies are still grappling with rising material and energy costs.<\/p>\n
Overall confidence rose to the highest in five months with some firms increasing promotional efforts to support sales growth in the year ahead.<\/p>\n
Together with the manufacturing PMI, the Caixin\/S&P Global Composite PMI rose to 51.9 from 50.3 in September.<\/p>\n
Recent figures pointed to increased deflationary pressures, softer export growth and subdued loan demand, red flags for an economic recovery.<\/p>\n
“Achieving China’s 2024 growth target will depend on a sustained recovery in consumer demand. That means policy efforts should focus on increasing household disposable income,” said Wang Zhe, Senior Economist at Caixin Insight Group.<\/p>\n
(Reporting by Liangping Gao and Ryan Woo; Editing by Sam Holmes)<\/p>\n<\/p><\/div>\n