China services PMI expands further in October

Chinese service activity growth accelerated in October at the fastest pace in four months, data revealed on Thursday.

The Caixin services purchasing managers’ index rose to 52.4 last month from 52.0 in September, above the 50 level that separates an expansion from a contraction.

The composite PMI, which combines services and manufacturing activity, increased to 52.9 in October from 51.4 a month earlier, marking the highest level since March 2013.

"Overall, the economy continued to expand in October and at a stronger growth rate,” said Zhong Zhengsheng, director of Macroeconomic Analysis at CEBM Group, a subsidiary of Caixin Insight Group.

“It may be possible to sustain this stable condition throughout the fourth quarter, but it’s important that supportive policies are not relaxed because the economy still lacks sufficient growth momentum.”