Chinese services lose steam and growth reaches three-month low
Services index remains above 50, but drops in October, while Apple surpasses consensus with revenue of US$114.5 billion and sales in China below expectations.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM INFOMONEY · 2 MIN
China's services sector slowed in October and brought the pace of expansion to a three-month low. According to InfoMoney, the services PMI calculated by RatingDog fell to 50.8, compared to 51.6 in September, the lowest value since July. Even so, the index remains above 50, a level that separates growth from contraction.
The reading shows that activity is still progressing, but with less strength. New business was practically stable compared to September, which indicates a lack of momentum in orders received. There is a positive point: new export business rose for the sixth month in a row, the longest streak since 2024.
The private sector survey, released on November 4, also records pressure on companies. According to the survey, companies cited strong competition and higher costs as obstacles to operations.
On the side of American companies, Apple presented the balance sheet for the fourth fiscal quarter, ended on September 26th. Revenue totaled US$114.5 billion, up 12%, and was slightly above the Bloomberg consensus of US$113.5 billion. The growth, however, was lower than the 16% recorded in the June quarter.
The report highlights weaknesses in part of the product line. Also according to InfoMoney, sales in China were below what analysts expected, and the iPad and wearables performed weaker, while the iPhone remained strong. The result is the first under new CEO John Ternus and was released in a statement on Monday.
What changes for the investor
The numbers do not allow a definitive conclusion, but they reinforce a point of attention: China appears on both sides of the story. If the Chinese economy loses momentum in services and Apple reports lower-than-expected sales in the country, investors may review exposure to Asian markets and companies with relevant revenue there. It is worth monitoring upcoming activity indicators and management comments on demand. This is a scenario reading, not a recommendation, as price behavior depends on many factors in addition to this data.
Automatically translated from Portuguese.
