China's Caixin Services PMI Lower-Than-Expected in May
China's Caixin Service PMI (May) came in at 51.2 vs 51.8 last, while the Composite stood at 50.5 vs 50.8 prior, both readings lower-than-expected.
Commenting on the China General Services PMI™ data, Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group said: “The headline Caixin China General Services PMI for May came in at 51.2, down 0.6 from the reading for April, marking the second consecutive monthly decline. All of the index categories, with the exception of output prices, which remained stable, showed signs of deterioration. The Caixin China Composite Output Index for May was 50.5, down 0.3 from April’s reading but still above the neutral 50 point level."
Dr. Zhong added: "However, it also marked the second consecutive monthly decline, underscoring worsening conditions in both the manufacturing and services sectors. Underlying structural changes are still going on, with the manufacturing sector shrinking and services expanding. The government needs to continue to push forward stabilizing measures to help the economy recover. It should also relax the control and regulation of the services sector to enable it to realize its growth potential and to facilitate the tran sformation and healthy development of the economy."
