China Caixin PMI Services jumped to 58.4 in June, up from 55.0, beat expectation of 53.8. The rate of expectation was the quickest recorded since April 2010. The upturn was widely attributed to the recent easing of conronavirus related restrictions and stronger demand conditions. PMI Composite rose to 55.7, up from 54.5, strongest since November 2010.
Wang Zhe, Senior Economist at Caixin Insight Group said: “Employment remained the key problem. Multiple data showed that work resumption rates at manufacturing and service companies continued rising in June, but it still takes time for the economy to fully recover.
“Therefore, although businesses were optimistic about the economic outlook, they remained cautious about increasing hiring, with employment in both the manufacturing and services sectors shrinking. Addressing the employment problem requires not only macro policies to further promote work resumption, but also more targeted relief measures introduced by governments to tide companies over.”