The official purchasing managers' index (PMI) for China's non-manufacturing industries fell 1.6 percentage points (pps) month-on-month to 57.7 in October, according to the China Federation of Logistics and Purchasing (CFLP).

The retail industry was boosted by strong consumption, while the construction sector slowed down as a result of reduced investment on railway infrastructure.

The only two sub-indices which rose in October were those for new export orders and supplier delivery times.

The new export order sub-index rose 0.7 pps from September to 50.4 in October. The hospitality, air transportation, postal and software sectors posted readings of more than 50, while the construction and the storage industries had readings of below 50.

According to Cai Jing, the vice president of the CFLP, with the sub-index for new orders only down 0.3 pps m-o-m to 52.5, non-manufacturing industries maintained stable growth in October.

Consumption-related industries posted the highest reading of 53.9 in the sub-index for new orders, while production-related services had a reading of 51.6, and the construction sector posted a reading of 50.5.

The retail, hospitality, air transportation, postal, and software sectors had readings of more than 50, while the construction and real estate industries had readings of below 50.

The sub-index for intermediate input prices fell 4.2 pps to 55.7. Eighteen out of 20 industries, including the catering, hospitality, software, retail, and postal sectors had readings of more than 50, while the marine and rail transportation sectors had readings of less than 50.

The sub-index for charges fell 2.7 pps to 48.7. The hospitality, retail, catering, and construction sectors had readings of more than 50, while the wholesale and real estate sectors had readings of less than 50.

Source:21cbh.com