Growth in China’s services sector weakened further in October as new business cooled, a private survey showed on Wednesday, reinforcing signs of a gradual economic slowdown that could prod the government to unveil fresh stimulus measures.
The services purchasing managers’ index (PMI) compiled by HSBC/Markit pulled back to 52.9 in October – the weakest reading since July – from 53.5 in September. A reading above 50 in PMI surveys indicates an expansion in activity while one below that threshold points to a contraction.
A sub-index measuring new business fell to 53.1 in October from 53.2 in October, but sub-index measuring employment and outstanding business both inched up, painting a mixed picture.
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