China’s services sector recovery accelerates, boosted by employment and surging business optimism

The Caixin/Markit services purchasing managers’ index (PMI) rose to 54.3, the highest since December, from 51.5 in February

The findings were largely in line with an official survey released last week, which showed China’s non-manufacturing purchasing managers’ index (PMI) rose to 56.3 in March from 51.4 in February

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The Caixin/Markit services purchasing managers’ index (PMI) rose to 54.3, the highest since December, from 51.5 in February, well above the 50-mark that separates growth from contraction on a monthly basis. Photo: AFP

Published: 10:24am, 6 Apr 2021Updated: 4:46pm, 20 May 2021

A recovery in China’s services sector picked up speed in March as firms hired more workers and business optimism surged, although inflationary pressures remained, a private sector survey showed on Tuesday.

The Caixin/Markit services purchasing managers’ index (PMI) rose to 54.3, the highest since December, from 51.5 in February, well above the 50-mark that separates growth from contraction on a monthly basis.

Firms reported the sharpest increases in activity and overall sales in three months. New export business continued to contract but at a slower pace.

A subindex for employment rose back into positive territory as businesses hired more workers than they laid off, the survey showed.

The findings were largely in line with an official survey released last week.

The Covid-19 flare-ups that occurred in the fall and the winter have basically died down, and the services sector has quickly recovered with supply and demand expanding

Wang Zhe

Chinese authorities successfully curbed domestic transmissions of coronavirus over the winter, leading to quarantine restrictions and testing requirements being scaled back.