Falls for both services and composite PMIs from Caixin / Markit for China in March

Services 52.3 ... big miss indeed... yes, expansion still, and at the slowest pace for four months

  • expected 54.5, prior 54.2

Composite 51.8

  • prior 53.3

Comment from Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group said

  • "The Caixin China General Services Business Activity Index fell to 52.3 in March from 54.2 in February.
  • Both new business and employment grew at a slower rate last month, pointing to cooling demand.
  • However, the ability of service providers to make a profit improved as input costs increased at a weaker pace while output prices edged up.
  • The sub-index gauging service companies' expectations towards business activity over the next 12 months declined to the lowest reading since September, suggesting that weakening demand has affected firms' confidence.
  • The headline Caixin China Composite PMI dropped to 51.8 in March, the lowest reading in four months but remaining in expansionary territory.
  • The slowdown of output growth in the services sector was faster than that in the manufacturing industry.
  • The increase in input costs slowed while that in output prices picked up, improving chances for companies to gain a profit. "Overall, the growth momentum of the Chinese economy weakened in March."