China: Caixin services PMI rises but full employment down - SocGen

Research Team at Societe Generale, notes that the Chinese data released this morning showed that the Caixin services PMI rose in March from 51.2 to 52.2.

Key Quotes

“This comes close on the heels of the March official manufacturing PMI data, which also surprised to the upside (50.2 vs consensus 49.4). Our economists see a calmer H1 than seemed possible at the beginning of the year and expect the Chinese economy to grow 6.6% yoy in Q1 and 6.3% in Q2 on the back of an improved housing sector and government-led spending.

The FX reserves data for March is scheduled to be released tomorrow, and our economists expect a first monthly rise in five months (from $3,202bn to $3,250bn), providing further evidence that the PBoC’s efforts to stabilise the CNY and stem capital outflows are reaping benefits.”