REPEAT: China Caixin Nov Services PMI Rises on Orders, Prices

Repeats Story Initially Transmitted at 02:32 GMT Dec 5/21:32 EST Dec 4

     BEIJING (MNI) - The Chinese services sector expanded in November at the

strongest pace since September, but remained weak by historical standards,

according to the latest survey of purchasing managers jointly released by Caixin

magazine and Markit.

     The headline index rose to 51.9 in November from 51.2 in October, the

second consecutive rise. 

     Readings above 50 indicate expansion in the services sector, and readings

below 50 indicate contraction. The higher the PMI reading above 50, the faster

the expansion in the sector. 

     "The [November] reading showed the economy has maintained stability and

there was no imminent risk of a significant decline in its growth rate," Zhong

Zhengsheng, director of macroeconomic analysis at CEBM Group, a subsidiary of

Caixin, said in the release.

     The rise in the Caixin services index was in line with with the pickup in

the official services PMI jointly released Nov. 30 by the China Federation of

Logistics and Purchasing (CFLP) and the National Bureau of Statistics (NBS). The

CFLP services PMI rose to 54.8 from October's 54.3 reading. 

     Growth in the Caixin services PMI was attributed to robust new business and

rising input and output prices. 

     "Services companies signalled a sustained rise in new work during

November," Caixin said. The index increased to three-month high as service

firms' success in attracting new clients and in their promotional activities

lifted overall sales. 

     Input and output prices continued to strengthen due to rising prices of raw

materials, according to Caixin. Output prices rose to the highest level since

July 2015. 

     the services employment index saw a marginal expansion. "Though modest, the

rate of job creation was the quickest seen since August," Caixin noted.

     Services companies showed a marginal drop in the level of work-in-hand due

in part to higher employment.

     Chinese services firms' confidence in their business outlook a year ahead

improved slightly, Caixin said.

     Caixin's China Composite PMI, which combines the results of its

manufacturing and services surveys, rose to 51.6 in November from 51.0 in

October, indicating a modest upturn in business activity, but remained weaker

than the series historical average, according to Caixin. 

     The composite sub-index for new business rose at the strongest pace in

three months, while input prices increased at a marked pace, as manufacturers

suffered a bigger cost burdens. 

     "Consequently, total business optimism declined to its weakest since

December 2015," Caixin said.

     "Mainly driven by the strong reading in the service sector, the headline

Caixin China Composite PMI came in 0.6 points higher than for the previous

month," Zhong said, "But we should be cautious because the economy may come

under rising inflationary pressure at the start of next year due to continued

price increases," he warned.

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com

--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com