Services Are Feeling the Heat Worldwide
Skerdian Meta • 1 min read
Today it has been quiet, as many countries are closed for a bank holiday weekend although there has been some price action. We saw a jump in the price of risk assets such as stock markets, commodity dollars, and cryptocurrencies earlier this morning.
Although, before that, the Caixing services report was released from China. Services were expected to show a decent bounce in May after the deep contraction in April, due to coronavirus lockdowns, which are still a thing in China, believe it or not. They did show s slight improvement, but missed expectations by a long way and still remain in deep contraiton.
Although, the market is more worried about services in Europe and the US now, after central banks have been hiking interest rates pretty fast in recent months and plan on increasing the pace further in the coming months, while inflation which is eroding the buying power for consumers, hasn’t been affected by rate hikes.
- Caixin Services PMI (May) 41.4 points vs 47.3 points expected, deep contraction still.
- April Caixin services were 36.2 points
- Composite services for May 42.2 points
- April composite services were 37.2 points
This wraps up the PMIs from China for May. Terrible result, but lockdowns crush services everywhere