Service Sector in China
Caixin Services PMI
Services Steady in China, After the Jump Post Covid
Starts Thursday, October 8, 2020 at 01:45
Updated Tuesday, September 29, 2020
Just like the manufacturing sector, services have been slowing in China as well although this sector didn't fall into contraction. In February services PMI declined to 51.1 points which is pretty close to inflation but it jumped in March to 54.4 points as that report showed. But, the declining trend resumed again and this indicator weakened in the following months, falling to 51.6 points in July. In August, Caixin manufacturing is expected to tick higher to 51.7 points which would be a positive sign, but the increasing trade war might have hurt this sector further. In October, Caixin services slowed further to 51.3 points and last month they fell to 51.1 points. So, it seems that services are being affected by the trade war indeed and services are suffering like manufacturing. Although, we saw a jump to 53.5 points for November, which is an encouraging sign, but it cooled off to 52.5 points in December. The report released last month posted the biggest decline,t taking this indicator to a record low at 26.5 points, which means deep recession. But, as China gets out of the wormhole with coronavirus, services improved in March and April, while in May it jumped to 55 points, which is better than the pre-covid level. In June we saw another jump to 58.4 points, but the last two months have been steady at around 54 points. Please follow us for live coverage of this event by experienced market analysts.
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About Caixin Services PMI
Level of a diffusion index based on surveyed purchasing managers in the services industry. Released monthly, on the third business day after the month ends. It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy. Survey of about 400 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.