China's Caixin services PMI ticks up as expected in March

3rd Apr 2024 07:15

(Sharecast News) - Activity in China's services sector grew as expected in March, according to figures released on Wednesday.

The Caixin services PMI ticked up to 52.7 from 52.5 in February, in line with expectations. A reading above 50.0 signals expansion, while a reading below indicates contraction.

Wang Zhe, senior economist at Caixin Insight Group, said: "Growth of supply and demand picked up pace. Improved market demand drove a continuous increase in supply.

"Business activity and total new orders both grew for the 15th straight month, while exports continued to grow amid a recovery of the global economy, pushing the corresponding measure to its highest level since June."

Zichun Huang, China economist at Capital Economics, said: "The rise in the Caixin services PMI is another sign that China's services sector continued to regain momentum last month. Its official counterpart also picked up, with the average of the two rising to an eight-month peak.

"Coupled with sizeable increases in the manufacturing PMIs, this adds to wider evidence of a stimulus induced pick-up in activity. We think this recovery will continue in the near-term but go into reverse by year-end when policy support is pared back."