China’s services activity expanded at the fastest pace in seven months in November, thanks in part to an uptick in growth of new export orders for service providers, a Caixin-sponsored survey showed Wednesday.
The Caixin China General Services Business Activity Index, which provides a snapshot of operating conditions in the country’s services sector, rose to 53.3 in November from 51.1 in the previous month, marking the fastest expansion since April. A number above 50 indicates an expansion in activity, while a figure below that points to a contraction.
The gauge for total new business showed a solid increase in November from the previous month, with new export business expanding at the fastest pace in four months.
The growth suggests “greater company profitability,” said Zhong Zhengsheng, director of macroeconomic analysis at CEBM Group, an affiliate of Caixin Global. The measure for unfinished work fell back into contractionary territory in November after two straight months of expansion, “suggesting a strengthening capability on the supply side in the services sector,” Zhong said.