The November Caixin services PMI has arrived as follows:
China Caixin PMI Composite Nov: 57.5 (prev 55.7).
China Caixin PMI Services Nov: 57.8 (est 56.4; prev 56.8).
A slight disappointment for the bulls and AUD is virtually unchanged on the release.
Reuters explained that the growth in China's services sector accelerated in November as new business rose at the fastest pace in over a decade, a private survey showed on Thursday, pointing to a further recovery in consumer demand after the country curbed its coronavirus outbreak.
''This was the second-highest reading since April 2010, from October's 56.8.''
''The 50-mark separates growth from contraction on a monthly basis.''
"To sum up, both the manufacturing and service sectors recovered at a faster pace as overseas demand kept expanding and employment saw substantial improvement," said Wang Zhe, senior economist at Caixin Insight Group, in an statement accompanying the data release.
"We expect the economic recovery in the post-epidemic era to continue for several months. At the same time, deciding how to gradually withdraw the easing policies launched during the epidemic will require careful planning as uncertainties still exist inside and outside China," Wang said, referring to crisis measures unveiled earlier in the year to support the economy.
''Caixin's composite manufacturing and services PMI, also released on Thursday, picked up to 57.5 from 55.7 in October, to signal the steepest increase in total Chinese output since March 2010.''
''Analysts expect China's economy to grow about 2% in 2020, the weakest since 1976 but still far stronger than other major economies.''
Description of the Caixin Services PMI
The Caixin Services PMI™, released by Markit Economics, is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 private service sector companies. The panel has been carefully selected to accurately replicate the true structure of the services economy.
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