These complete the PMIs from China for the month.
Services jump to 58.4
expected 53.2, prior 55.0
Composite 55.7
prior 54.5
Comments from Markit, main points:
"The Caixin China General Services Business Activity Index rose further into expansionary territory to 58.4 in June, pointing to an accelerating recovery of the services sector as the Covid-19 epidemic eased in China. The last time the index reached this type of height was in April 2010.
- 1) Both supply and domestic and overseas demand recovered.
- 2) Employment continued shrinking
- 3) Businesses were highly confident about the economic outlook. T
"The Caixin China Composite Output Index came in at 55.7 in June, remaining on an upward track, as production and demand of both the manufacturing and services sectors expanded. As the pandemic exerted a greater impact on the services sector than on the manufacturing sector - the services PMI was well below the manufacturing PMI in February - the services sector demonstrated a stronger recovery than the manufacturing sector in the post-epidemic period.
- In terms of overseas demand, while the services sector was recovering, the manufacturing sector remained under higher pressure
- although businesses were optimistic about the economic outlook, they remained cautious about increasing hiring, with employment in both the manufacturing and services sectors shrinking
- Addressing the employment problem requires not only macro policies to further promote work resumption, but also more targeted relief measures introduced by governments to tide companies over
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Earlier in the week:
