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    In April, Caixin China'S Service Industry PMI Rose To 54.5

    2019/5/6 20:48:00 9798

    Service IndustryPMI

                                                                         

         

    In May 6th, Caixin's general service industry activity index (PMI) in April was 54.5, an increase of 0.1 percentage points over March, the highest since June 2012, indicating further expansion of business activities in the service sector.

      

    Previously released in April, Caixin China's manufacturing PMI dropped 0.6 percentage points to 50.2, and the expansion rate was somewhat weakened, which was dragged down. In April, the new China comprehensive PMI was recorded at 52.7, lower than 0.2 percentage points in March.

      

    The trend of service industry and comprehensive PMI in Caixin China is not exactly the same as that of Statistics Bureau PMI.

    The National Bureau of Statistics announced the business activity index of service industry in April, which was 53.3, and the comprehensive PMI recorded 53.4, down 0.3 and 0.6 percentage points respectively.

      

    The total number of new orders for services in April continued to rise, but the growth rate was slightly below the March high.

    The enterprises surveyed showed that the marketing strategy improvement, new product launch and market demand improvement led to a rise in the total volume of new orders.

    The total number of new orders in manufacturing industry has also increased slightly. The two combined, the new orders increased moderately in April, and the growth rate slowed down compared with March.

      

    Foreign demand is divided.

    In April, the new export orders for services industry recorded the highest growth rate since the end of 2014. Many enterprises reflected that this was due to the strong demand in major markets, and the enterprises had intensified their efforts to expand overseas markets.

    The new export orders for manufacturing industry returned to the contraction zone, but the contraction rate was relatively moderate. The total number of new export orders decreased slightly in the two industries.

      

    Employment in the two industries also tends to split up.

    The size of service industry continued to rise slightly to the highest rate in 10 months, with some companies saying it was related to the growth of new orders, while manufacturing employment declined slightly again.

    Combined with the two, the scale of comprehensive employment in April increased slightly, and the growth rate was similar to that in March.

      

    In April, the input cost of the service industry continued to rise, or a record high since October 2018.

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

    Manufacturing input costs rose only moderately.

    In the two industries, the cost of input continued to rise slightly, or the highest in five months.

      

    In April, the two industries increased the ex factory price.

    According to some enterprises, this is related to stronger demand.

    Manufacturing prices rose slightly.

    Affected by the increase in input costs, the service industry also continued to raise the level of fees slightly, the highest increase in 10 months.

      

    Due to worries about the global economic weakness, the confidence of the two major industries and enterprises in the next 12 months is still relatively low.

    The optimism of the services sector dropped to a five month low, while manufacturing confidence rose slightly to a 11 month high, but the overall weakness remained.

      

    Zhong Zhengsheng, chairman and chief economist of the new financial think-tank, said that in April, China's economy still showed good resilience, especially in the service sector.

    However, the cost of service industry has increased pressure, which has suppressed the profit space, and the confidence of entrepreneurs has not improved.

    We need to be patient with economic stabilization. Under the keynote of steady growth, economic policies will moderately converge against cyclical policies and increase the intensity of structural and institutional policies.

         

         

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