China’s Caixin PMI Services index jumped from 52.5 to 54.0 in May, exceeding expectations of 52.6. This marks the 17th consecutive month of expansion and the highest reading since July 2023. Similarly, PMI Composite rose from 52.8 to 54.1, indicating expansion for the 7th straight month and at the fastest pace in a year.
Wang Zhe, Senior Economist at Caixin Insight Group, noted that growth in supply and demand in both the manufacturing and services sectors picked up pace, with a particularly strong increase in services demand. He mentioned that exports in both sectors improved amid market optimism. Additionally, employment in the services industry shifted from a decline to an increase, driving the composite index into expansion for the first time in nine months.
