Activity in China's services sector continued to expand in October thanks to the fading impact of the previous round of Covid-19 flare-ups, though service providers were under higher inflationary pressure, a Caixin-sponsored survey showed.

The Caixin China General Services Business Activity Index, which gives an independent snapshot of operating conditions in the sector, rose to 53.8 in October from 53.4 the previous month, according to the survey report released Wednesday. A number above 50 indicates an expansion in activity, while a figure below that points to a contraction.