(Bloomberg) -- China’s services activity expanded less than a month earlier, a private survey showed, a sign that consumer demand remains sluggish despite Beijing’s recent stimulus push.
The Caixin China services purchasing managers’ index fell to 51.5 in November, versus 52.0 the previous month, according to a statement released by Caixin and S&P Global on Wednesday. The median forecast of economists surveyed by Bloomberg was 52.4. Any reading above 50 suggests expansion.
Despite the slowdown from the previous month, Wang Zhe, senior economist at Caixin Insight Group, said in a statement, that “service providers generally expressed confidence in market improvement amid policy support.” However, “some were concerned about the future trade environment.”
China’s benchmark CSI 300 Index fell 0.4%, in line to snap a three-day win streak. The yuan was up slightly at 7.2789 versus the greenback, a day after falling to the lowest in a year.
Authorities have announced a slew of supportive measures since late September, including rate cuts and a $1.4 trillion program to help indebted local governments, leading tentative signs of recovery since October. Expectations are high that top Chinese leaders will use the annual closed-door Central Economic Work Conference next week to discuss keeping the 2025 growth goal in line with this year’s target of around 5%, despite Donald Trump’s return to the White House heralding a tariff war that could decimate bilateral trade.
Policymakers will also likely set a higher-than-usual deficit target of 3.5% to 4% of gross domestic product, economists at UBS Group AG and Barclays Plc said earlier. That would open the door to more central government borrowing to shore up the economy.
The Caixin results continued to be stronger than those from an official poll since last year, with the reading trailing the official figure only once in the last 12 months. Official measures of activity in November showed a slight pickup in the manufacturing sector, while a gauge of construction and services unexpectedly fell back to the 50 mark.
(Updates with details throughout.)
©2024 Bloomberg L.P.
