China’s Services Sector Growth Slows Down to Seven-Month Low in September - Forex News by FX Leaders

China’s Services Sector Growth Slows Down to Seven-Month Low in September

Posted Tuesday, October 8, 2019 by
Arslan Butt • 1 min read

The Chinese services sector registered the weakest rate of growth seen in seven months during the month of September. The Caixin China General Services PMI declined to 51.3 in September from 52.1 in August. This is the lowest reading for this index since February 2019.

On the positive side, new orders grew at the fastest pace since February 2018. Even though new export orders also continued to increase for the third consecutive month, the pace of growth slid lower. Employment in the services sector also saw a moderate expansion.

However, a high rate of inflation drove up average operating expenses in the month of September, with costs for labor, raw materials and fuels climbing higher and weighing on the overall performance of the services sector.

After a sharp bearish move earlier, USD/CNH has recovered and is trading somewhat steady at around 7.125 at the time of writing.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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