China's services growth slows to three-month low as confidence weakens
BEIJING: China’s services activity in October expanded at its slowest pace since July, with business confidence easing as firms grappled with fierce competition and rising costs, a private-sector survey showed on Wednesday.
China's services sector slowed to its weakest pace in three months in October, according to a private-sector survey released on Wednesday. Business confidence deteriorated as companies faced fierce competition and rising costs, the RatingDog China General Services PMI data revealed. The index fell to 50.8 from 51.6 in September, remaining above the 50 threshold that indicates growth but marking the lowest level since July.
While new business continued to expand at a rate similar to the previous month, export-oriented business growth persisted for the sixth consecutive month. Services firms expanded their workforce, adding both full-time and part-time employees to handle existing workloads. However, heightened competition forced firms to reduce their average selling prices for the second month in a row.
The Golden Week holiday offered minimal relief. Input prices surged at the fastest rate in five months, driven by higher material, fuel, and wage expenses. Business confidence plummeted to its lowest point since July, with firms expressing worries about the rising input prices and intensified competition.
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