(Bloomberg) -- A private gauge of China's services activity grew less than expected in October, adding to signs of fragility within the economic recovery.
The Caixin services purchasing managers' index edged up to 50.4 last month from 50.2 in September, Caixin and S&P Global said in a statement Friday. That was below the consensus estimate among economists of 51. Any reading over 50 indicates an expansion from the prior month, while a number below that suggests contraction.
“Market sentiment was less upbeat,” said Wang Zhe, senior economist at Caixin Insight Group, in a statement accompanying the data. He added that service providers are concerned about the economy's outlook, flagging that a gauge measuring their expectations about future activity declined to the lowest since March 2020.
New orders rose at the softest pace in 10 months, according to the survey, despite a boost to tourism from the lengthy Golden Week holiday at the beginning of October.
That may reflect increased cautiousness among consumers when it comes to spending while they're on vacation, given persistent sluggish confidence. The official PMI survey showed growth in services activity slowing in October.
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