China’s services activity growth speeds up in March as new business rises at quickest pace in 3 months

Caixin/S&P Global services purchasing managers’ index (PMI) rose to 52.7 in March from 52.5 in February

Data adds to evidence that parts of China’s economy are gaining momentum in the first quarter

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China’s Caixin/S&P Global services purchasing managers’ index (PMI) rose to 52.7 from 52.5 in February. Photo: Bloomberg

Published: 10:00am, 3 Apr 2024Updated: 10:02am, 3 Apr 2024

China’s services activity growth accelerated in March as new business rose at the quickest pace in three months, a private-sector survey showed on Wednesday, a sign sentiment was staging a tentative recovery in the world’s second-largest economy.

Together with other better-than-expected manufacturing surveys, the data added to evidence that parts of China’s economy are gaining momentum in the first quarter.

The Caixin/S&P Global services purchasing managers’ index (PMI) edged up to 52.7 from 52.5 in February, above the 50-mark that separates expansion from contraction for the 15th consecutive month.

Thanks to improving underlying demand and efforts to boost new orders, the pace of new business expansion was the fastest since December.

That also pushed up business confidence as the subindex of future activity increased for the first time in three months amid hopes that new product lines, expansion plans and rises in client budgets will help boost sales.

However, better sales and business confidence failed to translate into higher recruitment.

Employment levels shrank for a second successive month in March, though the rate of job shedding eased from February.