China Caixin PMI Services rose to 54.3 in March, up from 51.5, above expectation of 51.7. Markit noted that business activity and sales both rose at quicker rates. Employment returned to growth. Business confidence also hit highest for over a decade amid hopes of post pandemic recovery. PMI composite also picked up to 53.1, from February’s 51.7.
Wang Zhe, Senior Economist at Caixin Insight Group said: “To sum up, the economy continued to recover from the epidemic…. The recovery in manufacturing slowed for the fourth straight month, whereas for services, it expanded at a much faster pace… More attention still needs to be paid to inflation going forward. Input costs and output prices in the services and manufacturing sectors have been rising for several months, reflecting growing inflationary pressure. This has restricted the room for future policy changes and is not conducive to a sustained economic recovery in the post-epidemic period.”
