China’s Service Activity Eases to a Lower Expansion in Nov. as Virus Concerns Linger

Source: Caixin 

China’s Business Activity Index was 52.1 in November, indicating a softer level of expansion compared to 53.8 in October. CSI 300 is up +0.92%, USDCNY is down -0.08%.

• The slow growth in business activity reflects fresh virus concerns that impact sales.
• Growth of new orders remained muted while new businesses increased at the lowest pace in three months.
• Business hiring rose the quickest since May as firms added workers in anticipation of an uptick in activity.
• Input prices increased for the seventeenth month, with rising costs of materials, labor, and energy. The inflation rate was at a six-month high, while services output charges softened. 
• Chinese service firms retained a positive outlook over the next year, expecting that the virus will be contained.