Activity in China’s service sector expanded at a faster pace in November, a private gauge showed Tuesday, the latest indication of strength in the sector following official data released last week.
The Caixin China services purchasing managers’ index rose to 51.9 in November from 51.2 in October, Caixin Media Co. and research firm Markit said.
A reading above 50 indicates an expansion in activity while a level below that points to a contraction.
“The Caixin PMI readings in November showed the economy has maintained stability and there was no imminent risk of a significant decline in its growth rate,” Zhengsheng Zhong, director of macroeconomic analysis at CEBM Group said.
Compared with manufacturers, service providers showed a stronger business confidence in November. New business expanded at a rapid pace while input costs and prices charged continued to rise, said Caixin.
“But we should be cautious because the economy may come under rising inflationary pressure at the start of next year due to continued price increases,” Mr. Zhong said.
China’s official nonmanufacturing PMI, which includes the construction sector, rose to 54.8 in November from 54.3 in October, the National Bureau of Statistics said last week.
Source: Dow Jones