China service sector growth hits 7-month low - Caixin

China’s services sector grew at its slowest pace in seven months in September despite a strong increase in new orders, a private survey showed on Tuesday.

The Caixin/Markit services purchasing managers’ index (PMI) fell to 51.3 last month, the weakest since February, following August’s 52.1 reading. The guage, however, held above 50, indicating expansion. 

The Composite PMI picked up from 51.6 in August to 51.9 in September, to signal the strongest rate of growth since April. The data seems to have put a bid under the AUD. The AUD/USD pair has added 10 pips to hit a high of 0.6740.

Key points (Source: Reuters, Markiteconomics.com)

New orders for services in September grew at the fastest pace since January 2018

Operating costs hit a one-year high because of an increase in labor, fuel and raw material expenses.

The volume of new work from abroad received increased for the third straight month in September. 

Services firms added jobs at the fastest pace since January 2017.