China's service sector logs robust growth in October

RTTNews reports that survey results published by IHS Markit showed that China's service sector expanded strongly in October signaling a sustained recovery from the Covid-19 related drops in activity seen earlier in the year.

Services PMI advanced to 56.8 in October from 54.8 in the previous month. A score above 50 indicates expansion in the sector.

The sector posted its second fastest growth for over a decade, driven by a substantial rise in new work. However, new work from overseas markets declined further due to the resurgence of Covid-19 cases across a number of export markets.

Increased amounts of new work and signs of firmer market conditions led companies to add to their payroll numbers for the third straight month in October.

There was a marked improvement in business confidence in October. The degree of optimism was the strongest since April 2012.

The survey showed that the composite output index that combines the performance of manufacturing and services, rose to 55.7 from 54.5 in September, signaling a sharp and accelerated rise in overall business activity across China.