The Caixin China services purchasing managers’ index rose to 52 in October, versus 50.3 the previous month, according to a statement released by Caixin and S&P Global on Tuesday. The median forecast of economists surveyed by Bloomberg was 50.5. A reading above 50 points to expansion.
The health of the consumer economy will remain under scrutiny even as sectors from manufacturing to housing show tentative signs of recovery. Reviving domestic demand is key for avoiding a deflationary spiral that risks a cycle of declining spending by households, shrinking business revenues and job losses.
Starting in late September, policymakers embarked on Beijing’s largest effort to boost the economy since the pandemic by unveiling measures including interest-rate cuts and support for stock and property markets. Investors now expect China’s top legislators to approve a fiscal package at the end of this week, just days after the US presidential election.
Early indications point to stabilization in domestic demand in October, with the non-manufacturing measure of activity in construction and services moving back into expansionary territory last month. Unlike the official services PMI, the Caixin survey focuses more on smaller private firms.
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