Caixin services PMI suggests service sector growth accelerated in October

The Caixin/Markit services purchasing managers’ index rose substantially to 52 in October after hitting a 14-month low of 50.5 in September, The Financial Times reported. The new figure ends recent flirtation with a dip below the 50-point mark delineating expansion and contraction, and when combined with Caixin’s manufacturing survey pushes the composite index to 49.9, just shy of suggesting growth. “This shows that previous stimulus policies have begun to take effect, while the economic structure steadily improved,” said He Fan, chief economist at Caixin Insight Group, adding that the improvement should reduce the need for further stimulus.