China's business activity in manufacturing and services increased slightly in November, recovering from a 16-month low in October, data from Caixin and IHS Markit showed Dec. 5.
The Composite Output Index rose to 51.6 in November from 51.0 in October, indicating a moderate improvement in business activity but weaker than the series average. A reading above 50 indicates growth.
The seasonally adjusted Caixin China General Services Business Activity Index climbed to 51.9 in November from 51.2 the previous month. This was the highest reading since August.
New business also grew at the fastest pace in three months, as respondents reported more new clients and promotional activities. Companies also reported a slight pick up in new hires.
"The Caixin PMI readings in November showed the economy has maintained stability and there was no imminent risk of a significant decline in its growth rate," said CEBM Group Director of Macroeconomic Analysis Zhengsheng Zhong.
"But we should be cautious because the economy may come under rising inflationary pressure at the start of next year due to continued price increases," he added.
