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China’s services activity expands at fastest in almost a year in June
- Caixin/Markit services purchasing managers’ index (PMI) rose to 54.5 in June from 41.1 in May
- Last week, the official non-manufacturing PMI rose to 54.7 from 47.8 in May
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China’s services activity snapped three months of decline in June and grew at the fastest rate in almost a year as easing coronavirus curbs revived demand, although firms remained cautious about hiring, a private-sector survey showed on Tuesday.
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The Caixin services purchasing managers’ index (PMI) rose to 54.5 in June, indicating the fastest growth since July last year and the first expansion since February. That compared with 41.4 in May.
The 50-point mark separates growth from contraction on a monthly basis.
The upbeat findings are in line with those in an official survey that showed services industry staged the fastest rebound in 13 months, with sectors that were hard hit by virus curbs such as retail and road transport catching up with previously depressed demand.
While activity has sped up since various coronavirus lockdowns were rolled back, headwinds facing the world’s second-largest economy persist, including a still subdued property market, soft consumer spending and fear of any recurring waves of infections.
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Cases have risen in the past few days. Daily infections in mainland China increased to more than 300 over the weekend compared with a few dozens in late June.
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