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Caixin Chain Service PMI (May): 51.2 (vs. prior 51.8) & Composite 50.5 (prior 50.8)

There ya go, all the results in the headline!

The key points highlighted by Caixin / Markit:

  • Services activity growth slows to three-month low, as manufacturing output declines fractionally
  • Job creation slows to marginal pace at service providers, as manufacturing employment falls further
  • Cost pressures ease across both sectors

Comment from Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group said:

  • "The headline Caixin China General Services PMI for May came in at 51.2, down 0.6 from the reading for April, marking the second consecutive monthly decline.
  • All of the index categories, with the exception of output prices, which remained stable, showed signs of deterioration.
  • The Caixin China Composite Output Index for May was 50.5, down 0.3 from April's reading but still above the neutral 50-point level. However, it also marked the second consecutive monthly decline, underscoring worsening conditions in both the manufacturing and services sectors.
  • Underlying structural changes are still going on, with the manufacturing sector shrinking and services expanding.
  • The government needs to continue to push forward stabilizing measures to help the economy recover. It should also relax the control and regulation of the services sector to enable it to realize its growth potential and to facilitate the transformation and healthy development of the economy."

This is the private measure of services PMI. The official measure was out on Wednesday, it came in at 53.1, vs. a prior reading of prior 53.5. So, both official and private service PMIs in a little softer on the month and both still in 'expansion' readings.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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