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China’s service sector growth cools further in October

A key index tracking activity in China’s services industry showed growth continued to ease last month, as all areas of the economy appear to be feeling the weight of a slowdown.

The official non-manufacturing Purchasing Managers’ Index (PMI) dropped to 53.9 from 54.9 in September, though the score remains safely in the above-50 expansionary territory.

The manufacturing PMI, also released yesterday, was a clearer cause for concern, with the headline reading falling to a two-year low of 50.2.

Taken together, the composite index of economic activity across the two sectors fell to 53.1 in October from 54.1 the month before.

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