China’s Services Purchasing Managers’ Index (PMI) rose to 50.4 in October, compared to 50.4 in September, the latest data published by Caixin showed on Friday.
Business activity increases only slightly.
Sales expand at softest rate in ten months.
Employment stagnates as business confidence wanes.
Commenting on the China General Services PMI ™ data, Dr. Wang Zhe, Senior Economist at Caixin Insight Group said: “The Caixin China General Composite PMI for October was 50, down 0.9 of a point from the previous month and once again hitting the lowest reading this year. Demand expanded slightly, but the gauge for total new orders recorded the lowest reading this year.”
“Employment contracted for the second consecutive month, backlogs of work built up, and market confidence weakened again, although input and output prices remained relatively stable,” Wang added.
AUD/USD reaction to China’s Services PMI
Strong Chinese Services PMI fails to inspire the Aussie Dollar, keeping AUD/USD in the red near 0.6430, down 0.08% on the day, at the time of writing.