The privately surveyed PMI for services in February

  • From Caixin / Markit

Services PMI in at 51.1 for a big miss and fall on the month

  • expected 53.5, prior 53.6

Composite PMI in at 50.7

  • prior 50.9

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

"The Caixin China General Services Business Activity Index dipped to 51.1 in February from 53.6 in the previous month.

Among the gauges included in the survey

  • 1) The gauge for new business dropped, suggesting slowing growth in demand across the services sector;
  • 2) The measure for employment edged down despite staying in positive territory, indicating the sector's weaker capacity to absorb workers;
  • 3) Both gauges for prices charged by service providers and input costs edged up. The measure for business expectations continued to fall despite staying in positive territory, reflecting services providers' weakening confidence in prospects.

The Caixin China Composite Output Index inched down to 50.7 in February from 50.9 the month before.

1) Although the gauge for new export business returned to contractionary territory, the one for overall new orders remained in expansionary territory and rebounded marginally, reflecting a recovery in domestic demand - especially for manufacturing. However, the measure for backlogs of work fell for the second month in a row into contraction, and hit its lowest level since February 2016, reflecting downward pressure on overall orders;

2) The employment gauge returned to negative territory, implying that pressure on the labor market remained.

3) Both gauges for input costs and output charges rebounded, suggesting that the downward trend in prices was cushioned.

4) The measure for future output, which reflects business confidence, dropped despite staying in positive territory.

"In general, domestic manufacturing demand recovered significantly in February. However, with downward pressure on employment, expansion in the services industry slowed notably. Increased infrastructure investment may have prevented a sharper decline in economic growth."

AUD falls to a fresh session low. Can't get take a trick so far today.