China Sep Caixin Services PMI Fell to 21-Month Low

Features Dow Jones Newswires

Growth in activity in China's service sector slowed sharply in September, a private gauge showed Monday, in contrast with official data showing a faster pace of activity.

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The Caixin China services purchasing managers' index slipped to 50.6 in September from 52.7 in August, marking a 21-month low, Caixin Media Co. and research firm Markit said.

A reading above 50 indicates an expansion in activity from the previous month, while a result below that points to a contraction.

The growth of both new orders and output in the service sector slowed in September, Caixin said.

"The Chinese economy generally held up well in the third quarter. However, the expansion in both manufacturing and services cooled in September, suggesting downward pressure on economic growth may reemerge in the fourth quarter," said Zhengsheng Zhong, director of Macroeconomic Analysis at CEBM Group.

China's official nonmanufacturing PMI, which includes the construction sector, rose to 55.4 in September from 53.4 in August, the National Bureau of Statistics said on Sept. 30.

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Write to Grace Zhu at grace.zhu@wsj.com

(END) Dow Jones Newswires

October 08, 2017 22:24 ET (02:24 GMT)