China's services sector growth slows in October, PMI data reveals, as overseas orders decline and domestic demand falters. The RatingDog China General Services PMI, a key indicator, slipped to 52.6 in October, down from 52.9 in September, indicating a three-month low. This contrasts with the government's official PMI, which rose to 50.2, reflecting differences in sample coverage. The survey highlights a contraction in new export business, with respondents citing global trade uncertainties. Despite this, China's economic target of around 5% growth for the year remains on track. However, policymakers face pressure to introduce more stimulus due to a prolonged property slump, weak domestic demand, and trade uncertainty. The services sector growth is driven by faster expansion in new business, while employment levels continue to decline, and input costs rise while selling prices fall. Overall sentiment about the one-year outlook remains positive but weakened, with some companies concerned about global trade prospects and increased competition. The Composite Output Index fell to 51.8 in October, reflecting weaker output growth across both manufacturing and service sectors.
