China services activity expands at slowest pace in September this year

China’s services activity expanded at the slowest pace this year in September, a private-sector survey showed on Sunday, as demand remained weak despite a string of support measures.
 

The Caixin/S&P Global services purchasing managers’ index (PMI) dropped to 50.2 in September from 51.8 in August, the lowest reading since December. The 50-point mark separates expansion from contraction in activity.
 

The world’s second-biggest economy risks of missing a growth target of about 5 per cent this year as officials wrestle with a worsening property slump, weak consumer spending, high debt and geopolitical tensions, leading major banks to downgrade forecasts for the year.
 

 

“Services supply and demand grew at a slower pace in September, as market conditions improved less than expected,” said Wang Zhe, senior economist at Caixin Insight Group.
 

Business confidence for the 12-month outlook reached a 10-month low in September.
 

Services companies also grappled with higher costs for staffing and fuel, the survey showed.
 

However, there were some positive developments with overseas orders expanding after contracting in August, partly driven by increased foreign visitors.
 

Caixin/S&P’s composite PMI, which includes both manufacturing and services activity, declined to 50.9 from 51.7 in August, marking the weakest since December.

Lottery ticket sales rise as job prospects shrink 

China’s lottery ticket sales in August soared to their highest for any month so far this year, amid public concern about the economy following months of mostly gloomy data including youth unemployment.Nationwide lottery ticket sales jumped 53.6 per cent in August from a year earlier to $7.25 billion, the official Xinhua news agency reported. From January to August, a total of 375.76 billion yuan of lottery tickets were sold nationwide, up 51.6 per cent from a year earlier, the data showed.The surging lottery ticket sales coincided with months of mostly soft economic data, with the unemployment rate of job seekers aged between 16 and 24 drawing particular attention from policymakers.