Chinese non-manufacturing sector growth continues

<p>Chinese non-manufacturing sector expansion has continued.</p>

Growth in China's non-manufacturing sector has continued, albeit at a more subdued pace than before.

This is according to the non-manufacturing purchasing managers' index (PMI) for the world's second-largest economy, which revealed a reading of 55.5 for October, which is an increase compared to September's 53.7 reading.

According to the PMI system, any reading higher than 50 indicates growth and therefore the sector is picking up pace.

Last week, China announced that its manufacturing activity expanded for the first time in three months in October, dampening speculation that the nation's economic slowdown is accelerating.

However, the country's economy expanded at an annual rate of 7.4 per cent between July and September – which is the slowest pace in three years.

The services sector – which includes the construction industry – accounts for nearly 43 per cent of China's gross domestic product.

At close of play in Hong Kong this morning, the Hong Kong Hang Seng was down by 0.4 per cent to an index value of 22006.4 points.

Find the latest spread betting strategies at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.