CXSE - China service sector growth stays robust dropped to 56.4 in April

2023-05-05 01:30:25 ET

• The Caixin China General Services PMI declined to 56.4 in April 2023 from March’s 28-month high of 57.8, pointing to the fourth straight month of expansion in the sector, after lifting COVID-19 restrictions although expansion slowed slightly, as new orders growth eased. Meanwhile, employment continued to rise, boosted by plans to increase capacity and greater new order volumes.

• Employment growth slowed and backlogs continued to build, with the PMI Composite index falling from 54.5 to 53.6.

• That said, the rate of job creation slipped to a modest pace that was the softest seen in the current three-month period of payroll growth, while backlogs of work continued to rise.

• The rate of accumulation was similar to that seen in the prior month, however, and only mild.

• On the price front, input cost inflation accelerated to a 12-month, due to higher staffing costs, alongside greater prices for raw materials and office supplies.

• Meantime, output cost inflation rose only slightly as firms south to boost competitiveness and attract sales.

• Finally, business sentiment deteriorated to a four-month low.

• ETFs: ( FXI ), ( KWEB ), ( CQQQ ), ( MCHI ), ( ASHR ), ( YINN ), ( TDF ), ( CHIQ ), ( GXC ), ( EWH ), ( KBA ), ( YANG ), ( CXSE ), ( CAF ), ( CWEB ), ( PGJ ), ( KURE ), ( CHIX ), ( CYB ).

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