The Caixin services PMI, a private survey that gauges China’s services sector activity, was revealed on Thursday at 55.1 in May, down from 56.3 in April. Analyst believed the domestic service sector will continue to expand.
Caixin services PMI in May was roughly in line with the official services PMI released by the National Bureau of Statistics, which was 54.3 for May. Caixin’s manufacturing PMI for May stood at 52, indicating the manufacturing sector retains its growth momentum.
The latest services PMI reading indicated that new round of COVID-19 resurgences in other countries and regions have dragged down overseas demand for the domestic service sector, said Caixin.
The employment index in the service industry slightly decreased from April but still above the expansion line, a positive indicator for the recovering of service industry and the employment, analysts said.
Analysts suggested that China’s service and manufacturing sectors both remain on the expanding trajectories in May. However, the precipitous hike of bulk commodity prices is lifted the cost of manufacturing, which will impact economic recovery.