The services sector PMI produced by leading Chinese finance publication Caixin has posted its first gain for the year in May.
The reading for service sector PMI in May released by Caixin on 5 June was 52.8, for a gain of 1.3 percentage points compared to April.
The positive reading is largely consistent with the office services sector PMI for May released by China’s National Bureau of Statistics, which saw a month-on-month gain of 0.9 percentage points to 53.5.
The chief reason cited for improvements to service sector business activity in May was accelerating growth in new business, with the manifestation of latent consumer demand leading to the fastest growth in new orders received since the start of the year.
The Chinese services sector continued to add workers in May, although growth in employment has eased to its lowest levels in nine months.
Caixin economist Zhong Zhengsheng said that improvements in the services sector would provide support to China’s economic performance in May, but that the rapid slide in manufacturing performance was a source of concern.