Big improvement for the China Caixin/Markit PMIs Services and Composite for May

  • Services 55.5 vs. expected 47.3, prior 44.4

  • Composite 54.5 vs prior 47.6

This survey is the private sector survey, different to the official NBS PMI which was out over the weekend:

Main points from the Caixin commentary on the result:

  • services first return to expansionary territory since January
  • highest level since October 2010
  • service providers accelerated resumption of work after the domestic Covid-19 outbreak was largely brought under control
  • External demand remained sluggish
  • Employment gauge stayed in negative territory for its fourth month in a row despite rebounding slightly … Most companies in the survey expressed caution about expanding hiring, citing concerns over "cutting costs and improving efficiency."

All of China's PMIs have returned to expansion, above 50. Check this out, China PMIs with 'V' characteristics, right?

Big improvement for the China Caixin/Markit PMIs Services and Composite for May