BEIJING (Reuters) - China’s official purchasing managers’ index (PMI) for the services sector rose to 55.5 in October from 53.7 in September, the National Bureau of Statistics said on Saturday, adding to signs of a modest economic recovery.
A reading below 50 indicates activity is contracting and one above 50 signals expansion compared with the previous month.
The services sector index follows two manufacturing PMI surveys that showed the world’s second-largest economy is finally regaining some steam in October following a series of pro-growth policy steps, including interest rate cuts and quickening infrastructural spending.
China’s fast-growing services industry has so far weathered the global slowdown much better than the factory sector, with the PMI consistently signalling healthy expansion and hitting a 10-month high of 58.0 in March.
Reporting by Kevin Yao and Xu Wan; Editing by Jeremy Laurence