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China's services sector rebounds further in May, Caixin PMI shows
CGTN
People shopping at a supermarket in Hangzhou City, east China's Zhejiang Province, May 23, 2023./CFP
People shopping at a supermarket in Hangzhou City, east China's Zhejiang Province, May 23, 2023./CFP

People shopping at a supermarket in Hangzhou City, east China's Zhejiang Province, May 23, 2023./CFP

Chinese services activity recorded another strong recovery in May, as the China's Caixin services purchasing managers' index (PMI) climbed to 57.1 from 56.4 in April, according to latest data released by Caixin on Monday.

The expansion in the service industry has persisted for the fifth consecutive month and achieved the second-fastest pace in May since November 2020, according to the private sector survey.

"Service providers remained optimistic partly because the market environment improved," said Dr. Wang Zhe, senior economist at Caixin Insight Group.

Both the services supply and demand expanded further in May, while external demand also maintained strong momentum, according to Wang.

Caixin's China manufacturing PMI in May released last week also signaled resilience, coming in at 50.9, up 1.4 index points over the previous month.

As a result of the accelerated rise in overall business activity across China, the Caixin China General Composite PMI was 55.6 in May, up two index points from April, the greatest expansion since end of 2020.

"Consumption is expected to stabilize and recover," and "it is necessary to continue to improve market expectations, increase employment and disposable income of Chinese residents through the introduction of more expansionary fiscal policies, consumption stimulus measures and other favorable policies," Chang Haizhong, executive director of corporates at Fitch Bohua, commented on the latest data.

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