Tuesday, June 4, 2024

Slow but Steady Expansion: "China Caixin PMI Signals Fastest Services Activity Growth in 10 Months"

China will not see 5% GDP growth this year but growth in the domestic market continues.

Unfortunately for Chinese manufacturers, today's JOLTS report may signal future slowing in the export-stuff-to-America business. So all the more reason for China to nudge the inwardly directed services economy.

From the Wall Street Journal via MSN, June 4:

A private gauge of China’s services sector signaled the fastest pace of growth in 10 months in May, echoing official data thanks to strong business activity and market demand.

The Caixin services purchasing managers index increased to 54.0 in May from 52.5 in April, Caixin Media Co. and S&P Global said Wednesday.

The index, which has now stayed in expansion territory for 17 straight months, reached its highest level since July 2023. A reading above 50 suggests expansion, while one below indicates contraction.

Business activity and total new orders reported by surveyed service providers grew for the 17th month in a row, increasing at the fastest pace since July and May last year respectively, said Caixin. Export orders also had a fourth consecutive month of faster expansion, staying in expansionary territory for a ninth straight month.

Employment in the services sector returned to growth after three months of contraction. That’s a good sign for the world’s second-largest economy, which has struggled with a prolonged property downturn and subdued domestic consumption....