China Caixin PMI Services dropped to 51.5 in February, down from 52.0, slightly below expectation of 51.6. Markit noted that services activity growth eased to ten-month low. There was softer increase in total new work amid renewed drop in export sales. Nevertheless, confidence regarding the 12-month business outlook remained robust. PMI Composite dropped to 51.7, down from 52.2.
Wang Zhe, Senior Economist at Caixin Insight Group said: “To sum up, the momentum of manufacturing and services recovery further weakened. Overseas demand was sluggish and the job market was under higher pressure. Inflationary pressure continued to grow. Despite these headwinds, manufacturers and service providers were still optimistic. The confidence mainly came from the experience in fighting the pandemic over the past year, as well as the expectation that winter Covid-19 flare-ups were coming to an end. Also, companies were confident in the future outlook for their new products.
