Chinese Caixin Services PMIs expand at a slower pace
Activity in China's services sector expanded at a slower pace in November amid rising inflationary pressures and continuing small-scale COVID-19 outbreaks, a private survey showed on Friday as reported by Reuters.
''The Caixin/Markit services Purchasing Managers' Index (PMI) fell to 52.1 in November from 53.8 in October, but remained above the 50-point mark that separates growth from contraction on a monthly basis.''
''Caixin's November composite PMI, which includes both manufacturing and services activity, fell to 51.2 from 51.5 the previous month.''
Reuters reported that ''analysts say the services sector, which has been slower to recover from the pandemic than manufacturing, is more vulnerable to sporadic COVID-19 outbreaks and anti-virus measures, clouding the outlook for a much anticipated rebound in consumption in the months to come.''
"Policymakers should still focus on supporting small and midsize enterprises. They should also pay attention to problems including deteriorating job prospects, limited household income growth and weak consumer purchasing power," said Wang Zhe, senior economist at Caixin Insight Group.
"Enterprises are still facing high cost pressures. Policymakers should take inflation seriously."
AUD/USD remains steady regardless
AUD/USD has been on the move to the downside in Asia, reestablishing the move that was interrupted by a bullish start on Wall Street on Thursday.
It had broken the hourly support ahead of the data as illustrated above. However, the data has failed to move the needle so far despite expanding at a slower clip in services.
About the China Caixin Services PMI
A monthly questionnaire issued to purchasing executives in over 400 private service sector organizations yielded responses that formed the basis of the Caixin China General Services PMI (Purchasing Managers' Index). Sales, employment, inventories, and pricing are some of the variables tracked by the index.
A rating of greater than 50 suggests that the services sector is generally increasing, while a reading of less than 50 indicates that it is generally contracting.
A higher than expected figure should be seen as positive (bullish) for the CNY while a lower than expected figure should be seen as negative (bearish) for the CNY.