China’s service sector expanded strongly in November amid greater customer demand and a sustained recovery in market conditions after the coronavirus disease outbreak, survey data from IHS Markit showed Thursday.
The services Purchasing Managers’ Index rose to 57.8 in November from 56.8 in the previous month. The rate of growth was the second fastest since April 2010, exceeded only by that recorded in June 2020.
New orders climbed the most since April 2010 as export sales grew for the first time since June. Efforts to expand capacity and rising order volumes led companies to increase their staffing levels for the fourth month in a row.
Input costs increased at the fastest pace since August 2010 due to higher raw material and staffing costs.
Firmer demand conditions enabled firms to partially pass on their increased cost burdens to clients in the form of higher output prices. The rate of charge inflation was the steepest for just over ten-and-a-half years.
Business confidence regarding the year ahead strengthened for the third consecutive month in November. The overall degree of positive sentiment was the highest since April 2011.
The Caixin composite output index came in at 57.5 in November, stronger than 55.7 the previous month. The reading signaled the steepest growth in private sector since March 2010.
The higher index reading was supported by the steepest increase in manufacturing output for a decade and services sector growth.
“We expect the economic recovery in the post-epidemic era to continue for several months,” Wang Zhe, a senior economist at Caixin Insight Group said. At the same time, deciding how to gradually withdraw the easing policies launched during the epidemic will require careful planning as uncertainties still exist inside and outside China.
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