All articles tagged with #caixin pmi
China's May manufacturing activity contracted at its fastest rate since September 2022, driven by declining export orders and ongoing trade tensions with the US, despite some government measures to stimulate the economy.
Chinese manufacturing activity unexpectedly grew in August, with the Caixin PMI reading 51.0, its highest level since February. The growth was driven by improving local demand and an uptick in new orders, offsetting a slowdown in overseas demand. However, analysts warn that the Chinese economy still faces pressure, particularly due to worsening conditions in its biggest export markets. The Caixin survey focuses on smaller, private enterprises and contrasts with the official reading, which showed a fifth straight month of contraction in the manufacturing sector. Despite recent stimulus measures, the Chinese economy is expected to face sustained headwinds in the coming months.
China's services sector showed an increase in activity in May, according to the Caixin/S&P Global services purchasing managers' index (PMI), which rose to 57.1 from 56.4 in April. The rise in new orders supported the consumption-led economic recovery in the second quarter. The Caixin survey showed that service companies reported a rise in new business last month, when the first May Day holiday following China's COVID reopening boosted orders for hotels, restaurants, and travel agencies. However, some economists warn that pent-up demand for in-person services may fade due to slowing income growth and mounting unemployment.