Caixin / Markit PMIs for services and composite, both up on the month despite the manufacturing PMI (which was out on Friday) fallin

Services PMI 52.8 (prior 51.5)

  • The fastest expansion in 4 months

Composite (covers both manufacturing and services) hits 51.5 (prior 51.2 was a 10-month low)

Summary via Markit:

  • Stronger services activity growth offsets weaker expansion in manufacturing output
  • Solid rise in new business at services companies contrasts with marginal uptick at goods producers
  • Employment at the composite level declines at faster pace

Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group:

  • "The headline Caixin China General Services PMI was 52.8 in May, up 1.3 points from April. It marked the first uptick this year and was the highest reading in four months.
  • The new business sub-index hit the highest point since December and the input costs sub-index signalled stronger cost pressures.
  • However, the prices charged sub-index fell for the second consecutive month.
  • The headline Caixin China Composite PMI came in at 51.5 in May, up by 0.3 points from the previous month but remained at a low level. "The improvement in the services sector bolstered the Chinese economy in May. However, the rapid deterioration in the manufacturing industry is worrying. We need to closely monitor whether the diverging trends in manufacturing and services will widen further."


  • Composite at its second-lowest reading seen since September 2016
  • Service providers noting an acceleration in business activity growth while manufacturers saw only a marginal rise in production
  • Services activity was the quickest since January
  • Expansion in new orders was the most marked in the year-to-date