China’s services activity growth hits 9-month low in June, shows Caixin PMI By Liangping Gao and Ryan Woo BEIJING (Reuters) -China’s services activity expanded at the slowest pace in nine months in June, as demand weakened and new export orders declined amid a fragile trade truce with the United States, a private-sector survey showed on Thursday. The Caixin/S&P Global services purchasing managers’ index (PMI), fell to 50.6 from 51.1 in May, marking the weakest expansion since September 2024 but remaining above the 50-mark separating expansion from contraction. The reading was broadly in line with China’s official survey, which showed services activity easing slightly to 50.1 from 50.2 the previous month. The Caixin PMI is considered a better read of trends among smaller, export-oriented firms, particularly along the east coast, while the official PMI primarily tracks large and medium-sized enterprises, including state-owned companies. "Recently, major macroeconomic indicators have shown divergence, with consumption in certain sectors increasing beyond expectations, while the momentum of growth in investment and industrial production has weakened," said Wang Zhe, Senior Economist at Caixin Insight Group. "We must recognise that the external environment remains severe and complex, with increasing uncertainties. The issue of insufficient effective demand at home has yet to be fundamentally resolved," Wang added. Deepening deflationary pressures and a persistent property crisis continued to undercut demand and growth in the world’s second-largest economy. While the U.S. and China have settled on a framework trade deal, analysts expect eventual U.S. tariffs to remain well above historic levels, maintaining pressure on exporters and officials to find alternative markets or boost domestic demand. Expansion in both supply and demand moderated in June, with the new orders sub-index slowing. External uncertainties weighed on service exports, leading to a decline in new export business for the second consecutive month, the fastest rate of contraction since December 2022. Service providers remained cautious on hiring, leading the employment sub-index to decline in June after a previous increase. This led to the fastest accumulation of outstanding business in a year. A slower increase in average input costs, combined with competitive pressures, resulted in the steepest decline in output charges in over three years in June, suggesting intense market competition. The Caixin China General Composite PMI rose to 51.3 in June from 49.6 the previous month. With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

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China May services activity grows despite US tariff concerns, Caixin PMI shows BEIJING (Reuters) - China’s services activity expanded at a slightly faster pace in May, with new orders growing more quickly than in April, though new export orders declined due to uncertainty stemming from U.S. tariffs, a private sector survey showed on Thursday. The Caixin/S&P Global services purchasing managers’ index (PMI), rose to 51.1 in May from 50.7, remaining above the 50-mark that separates expansion from contraction. The reading was broadly in line with China’s official survey, which showed services activity edging up to 50.2 from 50.1 the previous month. The Caixin PMI is considered a better read of trends among smaller, export-oriented firms, particularly along the east coast, while the official PMI primarily tracks large and medium-sized enterprises, including state-owned companies. China’s economy grew faster than expected in the first quarter, and the government has maintained its annual growth target of around 5%. However, analysts warn that U.S. tariffs could significantly dampen momentum. Beijing and Washington have agreed to a 90-day pause during which both would cut import tariffs, raising hopes of easing tensions. Yet investors remain concerned that negotiations could progress slowly amid persistent global economic risks. "On the external demand front, new export orders remained sluggish in both the manufacturing and services sectors. Average costs for businesses rose slightly, but selling prices continued to weaken, increasing profit pressure," said Zhe Wang, senior economist at Caixin Insight Group. However, faster services growth failed to offset a drop in manufacturing production. The Caixin China General Composite PMI fell to 49.6 from 51.1 the previous month, marking the first contraction since December 2022. Last month, the central bank eased monetary policy to limit damage from the trade war with Washington, and lowered the ceiling for deposit rates to offset margin pressure on banks and prompt savers to spend or invest more. Both supply and demand expanded at a slightly quicker pace, as businesses sought to attract new clients. However, foreign demand weakened due to U.S.-China tariff uncertainty, with new export orders declining for the first time this year, the survey showed. Employment-related indices remained slightly above the 50-mark. Some firms continued to reduce headcounts to cut costs, while others hired more workers to meet rising demand. Service sector businesses faced the fastest input cost inflation since October 2024, driven by higher purchase prices and wages. Average output charges declined for the fourth month in a row in May. Overall sentiment over the next 12 months remained positive in the sector, with companies optimistic that the negative effects of U.S. tariffs may diminish over time. "In terms of policy, the lasting impact of earlier consumption-stimulating measures needs further evaluation," Wang added "More importantly, boosting domestic demand should be grounded in improving household incomes." With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

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China’s services activity rises to three-month high, Caixin PMI shows Blog Mobile Portfolio Widgets About Us Advertise Help & Support Authors Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website. It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website. Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

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Economic calendar in Asia Thursday, April 3, 2025 - China Caixin services PMI I prepared this post earlier but hung off on it awaiting the news from Trump. He didn't disappoint .... yowza! Anwya, here is what's ahead on the data agenda if you are interested. The Australian PMIs are done and dusted: * services: 51.6, ahead of expected (see screenshot below) * composite: 51.6 also This snapshot from the ForexLive economic data calendar, access it here. The times in the left-most column are GMT. The numbers in the right-most column are the 'prior' (previous month/quarter as the case may be) result. The number in the column next to that, where there is a number, is the consensus median expected. This article was written by Eamonn Sheridan at www.forexlive.com.

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