The purchasing managers’ index (PMI) for services hit 55.4, up from 53.9. Any score over 50 signals that the sector is growing.
Paired with the country’s manufacturing PMI, which was released earlier this week, the economy appears to be growing at a modest pace by Chinese standards.
Earlier in the year, analysts expressed concerns as to whether China would reach the government’s target for 7.5 per cent growth, given a protracted credit squeeze, but fears have since abated.
Christian Schulz of Berenberg commented: “With its huge foreign exchange reserves and domestic savings, China can deal with almost any problem coming its way. Growth is gradually slowing as the economy matures and the growth model shifts away from exports and investment towards more consumption.”