China Services Sector Picks Up Steam In May - Caixin
(RTTNews) - The services sector in China continued to expand in May, and at a faster rate, the latest survey from Caixin revealed on Monday with a services PMI score of 57.1.
That's up from 56.4 and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.
The steeper upturn in activity coincided with a stronger rise in overall new business received by Chinese service providers in May. The rate of growth was likewise the second-sharpest since November 2020, with panel members citing continued improvements in demand conditions and customer numbers since the rollback of pandemic restrictions. Increased amounts of new work and rising business requirements led firms to expand their staffing levels for the fourth successive month.
The survey also showed that the composite index climbed to 55.6 in May from 53.6 in April.
May survey data also pointed to a steeper upturn in composite new orders, which expanded at the quickest pace for just over two years and solidly overall. Growth in new export work remained marginal, however. Turning to employment, a faster reduction in manufacturing headcounts offset a mild increase in the service economy, leading overall workforce numbers to fall slightly. Prices data meanwhile indicated only a marginal rise in costs that was the joint-slowest for three years. Output charges fell for the second month in a row.
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