James HesterDow Jones – Activity in China's service sector expanded at a faster pace in October, a private gauge showed Friday, in contrast with official data showing a slower pace of growth.
The Caixin China services purchasing managers' index rose to 51.2 in October from 50.6 in September, Caixin Media Co. and research firm Markit said. The index picked up from September's 21-month low, but was modest overall and remained weaker than the historical average, Caixin said.
A reading above 50 indicates an expansion in activity from the previous month while a level below that points to a contraction.
The sub-index of new business declined for the second month in a row, while the sub-indexes of input prices and prices charged continued to go up, Caixin said.
"The Caixin PMIs for October showed that the economy had a relatively weak start to the fourth quarter," said Zhengsheng Zhong, director of Macroeconomic Analysis at CEBM Group.
"However, monetary policy is unlikely to be loosened unless major downside risks emerge," he added.
China's official non-manufacturing PMI, which includes the construction sector, fell to 54.3 in October from 55.4 in September, the National Bureau of Statistics said on Tuesday.