S&P Global: China’s service sector growth slows in Sep. ’24

The Caixin China General Services Business Activity Index dropped to 50.3 in September from 51.6 in August, marking the slowest growth in a year, according to S&P Global latest report released on Monday.

New business inflows continued to expand for the twenty-first consecutive month, driven by improved demand conditions and new product launches.

Despite a strong increase in export business, backlogs grew for the second consecutive month due to a rise in new orders. This led to firms hiring more staff to handle the workload, marking the third increase in staffing levels in eight months.

Average input costs also rose in September 2024, driven by higher material, labour, and energy costs. The inflation rate was the highest in almost two-and-a-half years, attributed to these cost increases, the report added.

Anecdotal evidence suggested that expanding sales channels and marketing efforts helped exporters secure more foreign orders.

Attribution: S&P Global report

Subediting: M. S. Salama