China’s Caixin PMI Services edged up slightly from 52.5 to 52.7 in March, matched expectations. PMI Composite, which tracks both manufacturing and service sectors, also increased from 52.5 to 52.7, indicating the most pronounced expansion of overall business activity since May 2023.
Wang Zhe, Senior Economist at Caixin Insight Group, highlighted the favorable economic performance in the early months of the year and the manufacturing sector’s five-month run in expansionary territory. He stated, “This indicates a generally stable and positive economic recovery”.
Despite these optimistic signs, the economist pointed out several challenges facing the Chinese economy. Wang Zhe identified persistent downward economic pressures, subdued employment levels, low prices, and insufficient effective demand as critical issues that have yet to be fully addressed.
