The Caixin China general service industry business activity index (service industry PMI) released on November 3 recorded 53.8, up 0.4 percentage points from September, the highest since August 2021. The previously announced PMI of Caixin China's manufacturing industry in October recorded 50.6, up 0.6 percentage points from September, returning to the expansion range. The prosperity of the two industries rebounded at the same time, driving the comprehensive PMI of Caixin China to rise by 0.1 percentage point to 51.5 in October. Data show that the negative impact of the epidemic weakened, superimposed on the rising demand for the National Day holiday, driving the synchronous repair of supply and demand of the service industry in October, and the production index and new order index recorded a new high since August. The interviewed enterprises said that the expansion of business activities was mainly due to the increase of new business and the improvement of domestic epidemic situation. The improvement of external demand is particularly obvious. With the recovery of economies from the epidemic and the steady improvement of overseas customer demand, the number of new export orders in the service industry rebounded to the expansion range in October, with the highest growth rate in six months. The improvement of supply and demand continued to pick up employment, and the employment in the service industry expanded for the second consecutive month in October. Enterprises that increase employment generally say that customer demand is rising and enterprises strive to improve production capacity. However, in October, the input prices of the service industry rose for 16 consecutive months, and accelerated compared with September. The surveyed enterprises reported that the rise in labor costs and raw material prices pushed up the operating expenses of the service industry, resulting in pressure on the cost side of the enterprise. At the same time, the steady market demand partially transmitted the pressure on the cost side to the downstream, and the sales price index of the service industry recorded the highest in three months. In October, service enterprises remained optimistic about their business prospects. The interviewed enterprises expect that the epidemic will continue to improve and new businesses will grow. However, some enterprises are worried that rising costs and blocked supply chains will affect their operations in the coming year. It is worth mentioning that the data previously released by the National Bureau of statistics showed that in October, the non manufacturing business activity index was 52.4%, which was 0.8 percentage points lower than that of the previous month, but it was still higher than the critical point, indicating that the non manufacturing industry continued to expand. Among them, the business activity index of service industry is 51.6%. From the perspective of the industry, the business activity index of telecommunications, radio and television and satellite transmission services, Internet software and information technology services has been higher than 56.0% for two consecutive months, and the market activity has been increasing; Driven by the "11" golden week, the business activity indexes of accommodation, catering, ecological protection, environmental governance, entertainment and other industries closely related to holiday consumption are all in the higher boom range of more than 55.0%, and the total business volume has increased significantly compared with the previous month. From the perspective of market expectation, the expected index of business activities is 58.5%, which continues to be in a high boom range, indicating that most enterprises are optimistic about the recent development of the service industry market. (outlook new era)