China’s service sector expanded at a strong momentum on October supported by robust demand despite inflationary pressure.
The Caixin/Marklit service Purchasing Manager’s Index (PMI) rose 53.8 in October marking the highest since July. In September the reading read 53.4.
The private survey is in contrast with the official survey which reported PMI falling to 52.4 in October compared to 53.2 in September.
Leisure and tourism businesses have been under pressure since late October given fresh new COVID-19 outbreak in parts of the country and the country’s zero COVID policy in place.
The Ciaxin’s PMI report also showed a sub-index for new businesses edged up to 54.1 from 53.1 in September backed by export orders.
Soaring inflationary pressure and bottlenecked supply chains also dampened business confidence the lowest in four months, according to the survey.