Business activity in Chinese services sector accelerates in November 2017 to a three-month high, according to assessment of the economic magazine Caixin and the company Markit. The Purchasing Managers’ Index (PMI) rose from 51.2 in October to 51.9 in November. This is the highest value since August, but the pace of expansion remains moderate and weaker than the long-term trend.
The values are largely the same as last week’s official report, which showed acceleration in November. Overall, this supports the view that the expected slowdown in the economy will be more gradual.
Any value above 50 points speaks of growth, and below 50 for a contraction in the sector.
The report shows that the new business service sector is also growing at its fastest pace in three months. The companies say that sales are backed by new customers and promotional offers. There is also a slight acceleration in the rate of recruitment.
The Chinese authorities rely on the growth in services and consumption to rebalancing their economic model, which relies too much on investment and exports.
The services sector generates more than half of GDP and rising wages support the purchasing power of the Chinese citizens.
Unlike official reports, Caixin PMI focuses on smaller and medium-sized businesses that face more difficulties than large state-supported companies, which are measured by the state PMI.