China's services sector expands again in May - Caixin

5th Jun 2024 07:17

(Sharecast News) - Activity in China's services sector accelerated in May at its fastest pace in 10 months, according to data released on Wednesday.

The Caixin services purchasing managers' index for the sector rose to 54.0 from 52.5 in April, hitting its highest level since July 2023. It also marked the 17th month of expansion in a row.

A reading above 50.0 indicates growth, while a reading below signals contraction.

Economists were expecting a reading of 52.6.

Capital Economics said: "The jump in the Caixin services PMI means that the survey data for May now suggest economic momentum remained fairly robust last month.

"We think strength in exports, a step-up in fiscal support and new property stimulus will continue to drive a cyclical pick-up over the coming months. But this may not be sustained for long given the structural challenges facing the economy."