China’s services sector expanded at its slowest pace in three months in October, according to a private survey by Rating Dog. The services purchasing managers’ index (PMI) fell to 50.8, down from 51.6 in September and below the Bloomberg consensus forecast of 51.7. This marks the first decline since July, signaling weakening momentum as business confidence eased and firms reduced selling prices despite rising input costs.
The drop comes shortly after the official PMI survey showed the services industry hovering at the 50.0 threshold, indicating near-stagnant growth. Rating Dog, which focuses on small and medium-sized enterprises, noted that operational constraints continued to hinder performance, even as new business inflows remained solid. Yao Yu, founder of Rating Dog, stated that while growth persisted into the fourth quarter, it was at a "softer pace." The divergence between private and official surveys reflects differences in sample sizes, locations, and business types, with Rating Dog offering a more granular view of SMEs.
The data underscores challenges facing China’s services recovery amid persistent inflationary pressures and external headwinds.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing