🍎 🍕 Less apples, more pizza 🤔 Have you seen Buffett’s portfolio recently?Explore for Free

China services activity grows more than expected in May- Caixin PMI

Published 2024-06-04, 09:56 p/m
© Reuters.
USD/CNY
-
SSEC
-
CSI300
-

Investing.com-- China’s services sector grew more than expected in May, private purchasing managers index data showed on Wednesday, as persistent stimulus measures from Beijing benefited some facets of the economy. 

The Caixin services PMI rose to 54 in May, more than expectations of 52.6 and higher than the 52.5 reading in April.

Increased new business- on improving local and overseas demand- were a key boost to the sector. Wednesday’s reading showed the services PMI expanding for a 17th consecutive month. 

Still, the Caixin data contrasted with official PMI data released last week, which showed that non-manufacturing activity grew at a slower pace in May than April. 

But the Caixin PMI survey differs from the official survey in its scope and areas covered. The Caixin survey covers smaller, private businesses in southern China, while the official survey focuses more on larger, state-run businesses in the north. 

Still, Wednesday’s data indicated that recent stimulus measures from Beijing were helping support some facets of the world’s second-largest economy, a trend that could put it on track to meet the government’s 5% annual growth target. 

But weak official PMI data signaled that the country’s biggest enterprises were still under pressure from weak demand and sluggish spending.

Beijing rolled out a swathe of stimulus measures in recent months to support growth. But they so far appeared to be providing only limited support to the Chinese economy. A deflationary trend and a property market crisis are the two biggest points of contention for the economy.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.