China’s Caixin Services PMI climbed sharply in May

China 's Caixin May Services PMI came in at 52.8 in May vs 51.5 last and 51.4 expectations.

Summary – Services and Composite PMI data

The Caixin China Composite PMI™ data (which covers both manufacturing and services) indicated only a modest expansion of overall output during May. At 51.5, the Composite Output Index rose slightly from April’s ten-month low of 51.2, but nonetheless posted the second-lowest reading seen since September 2016.

Commenting on the China General Services PMI™ data, Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group said: “The headline Caixin China General Services PMI was 52.8 in May, up 1.3 points from April. It marked the first uptick this year and was the highest reading in four months. The new business sub-index hit the highest point since December and the input costs sub-index signaled stronger cost pressures. However, the prices charged sub-index fell for the second consecutive month. The headline Caixin China Composite PMI came in at 51.5 in May, up by 0.3 points from the previous month but remained at a low level. The improvement in the services sector bolstered the Chinese economy in May. However, the rapid deterioration in the manufacturing industry is worrying. We need to closely monitor whether the diverging trends in manufacturing and services will widen further.”