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China's economic recovery
EconomyEconomic Indicators

China’s services activity growth eases in April, but new business and export orders accelerate

  • China’s Caixin/S&P Global services purchasing managers’ index (PMI) eased to 52.5 in April from a 52.7 in March
  • But new business hit the highest since May last year, while better overseas demand and growth in tourism activity helped propel growth in new export orders

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Caixin/S&P Global services purchasing managers’ index (PMI) eased to 52.5 from a 52.7 in March. Photo: Bloomberg
Reuters

China’s services activity expansion slowed a touch amid rising costs, but growth in new orders accelerated and business sentiment rose solidly in a boost to hopes of a sustained economic recovery, a private sector survey showed on Monday.

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The Caixin/S&P Global services purchasing managers’ index (PMI) eased to 52.5 from a 52.7 in March, remaining in expansionary territory for the 16th straight month. The 50-mark separates expansion from contraction.
The world’s second-largest economy grew faster than expected in the first quarter, but it is still facing a host of challenges including a prolonged property slump and lacklustre domestic demand.

“The strong start to the year is consistent with the Caixin manufacturing and services PMIs, which have remained in expansionary territory for several straight months,” said Wang Zhe, senior economist at Caixin Insight Group.

Overall new business hit the highest since May last year, while better overseas demand and growth in tourism activity helped propel growth in new export orders to their fastest pace in 10 months.

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That in turn helped lift business confidence among Chinese service providers in the 12 months ahead to the highest this year.

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