China non-manufacturing PMI at 18-month high in Oct

BEIJING, Nov 3 - China's semi-official purchasing managers' business activity index for non-manufacturing sectors rose to 62.1 in October from 58.9 in September, the China Federation of Logistics and Purchasing (CFLP) said on Tuesday.

It was the strongest reading since April 2008 and the eighth month in a row that the index has been in expansionary territory above 50.

The strong non-manufacturing PMI means China's private consumption sector is gaining strength, Cai Jin, vice chairman of the CFLP, said in a statement.

"China's recovery is relying more on end-user consumption and less on intermediary spending, and this will help to enhance the foundation for China's stable and fast economic growth," Cai said.

The non-manufacturing sector includes construction, postal services, computers and software, aviation, railways, retailing and catering.

The new orders sub-index rose to 56.7 in October from 55.2 in September. The new export orders sub-index rose to 51.9 percent in October from 47.5 in September.

The improvement in the non-manufacturing PMI echoed that of the manufacturing sector. The official manufacturing PMI, which the CFLP compiles on behalf of the National Bureau of Statistics, rose to 55.2 in October, an 18-month high.

A companion PMI published by HSBC also reached the strongest reading since April 2008. [ID:nPEK81136] [ID:nPEK121771]

CFLP non-manufacturing PMI index:

Oct Sep Aug Jul Jun May Apr Mar Non-Manuf. PMI 62.1 58.9 59.9 58.9 55.4 60.9 59.0 55.7