China's October Caixin Services PMI at 48.4... Deteriorates for 2 Consecutive Months

[Image source=Reuters Yonhap News]

[Asia Economy Beijing=Special Correspondent Kim Hyunjung] The business outlook index for the private service sector, which reflects China's economic sentiment, has declined for two consecutive months. This is interpreted as a result of the spread of COVID-19 and the government's strengthened prevention and control measures.

On the 3rd, Chinese economic media Caixin reported that the service Purchasing Managers' Index (PMI) for October recorded 48.4. This is not only a drop from September's 49.3, which was below the baseline (50) for the first time in four months, but also below the forecasted value of 49.2.

This index, where a value above the baseline indicates economic expansion and below indicates contraction, had plunged to 41.4 in May due to the zero-COVID restrictions such as the Shanghai lockdown, but had stayed above 50 for three consecutive months thereafter.

The previously released October Caixin manufacturing PMI recorded 49.2, surpassing both the forecast (49.0) and the previous month (48.1), but still failed to exceed the baseline. The official October manufacturing PMI and service PMI announced by the National Bureau of Statistics showed sluggish trends at 49.2 and 47.9 respectively, reflecting a similar pattern.

This content was produced with the assistance of AI translation services.