In March, Caixin China'S Service Industry PMI Rose To 54.4

In April 3rd, Caixin China's general service industry activity index (PMI) recorded 54.4 in March, a sharp rebound of 3.3 percentage points from the low point in February, a record high since February 2018.

Previously announced in March, Caixin China manufacturing PMI rose 0.9 percentage points to 50.8, the first expansion in four months.

Significant growth in the two industries led to the recovery of PMI in Caixin China by 2.2 percentage points to 52.9, the highest since July 2018.

The trend of service industry and comprehensive PMI in Caixin China is consistent with that of Statistical Bureau PMI.

In March, the National Bureau of Statistics announced the business activity index of service industry was 53.6, a slight increase of 0.1 percentage points, and consolidated PMI recorded 54, an increase of 1.6 percentage points from last month.

In March, demand for services and manufacturing rose simultaneously.

The total number of new orders in service industry has increased rapidly, the highest growth rate in 14 months.

Some enterprises have shown that demand is improving, new product releases are driving up the total number of new orders, and the total number of new orders in manufacturing industry has also seen a slight acceleration, but the growth rate is still low.

The combination of the two represents a modest increase in new orders in March.

Foreign demand has also improved.

The new export orders for manufacturing industry reversed the contraction in February, and picked up slightly. The new export orders of the service industry also recorded a second high growth rate since December 2017, and the total number of new export orders increased slightly in the two industries.

Employment in the two industries is also expanding.

The scale of employment in the service industry continued to rise slightly, with the growth rate approaching February, while manufacturing employment expanded for the first time in more than five years, but the growth rate was still small.

A combination of the two, the scale of comprehensive employment in March has expanded for the first time in more than a year, but the growth rate is only small.

In March, the input cost of services increased slightly, compared with that in February.

According to the respondents, the increase in cost is mainly related to the price of raw materials, pportation and salary increase.

The cost of manufacturing industry rose for the first time in four months, but the increase was only small.

In the two industries, input costs continued to rise slightly.

Factory prices continued to rise in March.

According to many enterprises, the increase of input cost and the stronger demand of customers lead to the rise of factory price.

Among them, the manufacturing factory price rose slightly, and the increase was the highest in five months.

The service industry also continued to raise the level of fees slightly, which was similar to that in February.

With the improvement of demand, the two industry enterprises have slightly improved their confidence in the production and business prospects in the next 12 months.

The optimism of the service industry has reached its highest level in three months, and the manufacturing industry has hit a 10 month high. However, compared with the long-term average, the prospects for the two industries are still weak.

Zhong Zhengsheng, chairman and chief economist of the new financial think-tank, said that in March, China's economic boom had been markedly restored, especially as demand improved and manufacturing employment improved significantly. However, entrepreneurs' confidence was still cautious, price rises and kinetic energy were insufficient, and whether China's economy was actually stabilized remains to be seen.