China’s Caixin PMI Services dropped to 56.4 in April, down from 57.8 in March and slightly below the expected 56.5. According to Caixin, the sector experienced slower yet still sharp increases in activity and new work, while input cost inflation accelerated to a one-year high. Employment growth slowed and backlogs continued to build, with the PMI Composite index falling from 54.5 to 53.6.
Wang Zhe, Senior Economist at Caixin Insight Group said: “In April, the services sector kept up momentum, while manufacturing activity turned comparatively sluggish and became a drag on economic growth. It remains to be seen if the economic rebound is sustainable after a short-term release of pent-up demand, with a number of indicators flagging that the recovery has yet to find a stable footing.”