KURE - China services PMI climbs to 28-month high in March amid post-covid optimism

2023-04-06 00:24:36 ET

• The Caixin China General Services PMI increased to 57.8 in March 2023 from 55.0 in February, pointing to the fastest pace of expansion in activity since last November 2020, boosted by a sharp rise in new orders and employment, following the recent easing of COVID-19 measures.
• New orders rose at the fastest pace in 28 months, with new export business expanding at the quickest rate since the series began in September 2014.
• Employment increased at the fastest since November 2020, while the rate of accumulation accelerated on the month but was mild overall.
• Caixin/S&P’s composite PMI, which includes both manufacturing and services activity, rose to 54.5 in March from 54.2 a month prior, marking the quickest expansion since June.
• On the price front, input cost inflation accelerated to a seven-month high, due to higher wage costs and raw material prices.
• Meanwhile, output cost inflation rose marginally as limited firms' abilities to pass on higher cost burdens to clients.
• Finally, business sentiment deteriorated to a three-month low.
• “Services supply and demand expanded rapidly last month. The market returned to normal quickly after the most recent wave of Covid-19 infections subsided, fuelling both supply and demand,” said Wang Zhe, senior economist at Caixin Insight Group.
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