China's Caixin Services PMI drops to 51.5 in February, at ten-month lows

Dhwani Mehta FXStreet

China's Caixin services PMI for February came in at 51.5 vs. 52.0 last, which showed that the business activity grew at the slowest pace in ten months.

The Composite Output Index also fell from 52.2 in January to 51.7 in February.

A sub-index for employment stood at 47.9, slipping into contraction after six months of growth.

Key findings

Services activity growth eases to ten-month low.

Softer increase in total new work amid renewed drop in export sales.

Confidence regarding the 12-month business outlook remains robust.

Commenting on the China General Services PMI ™ data, Dr. Wang Zhe, Senior Economist at Caixin Insight Group said: "The Caixin China General Services Business Activity Index came in at 51.5 in February, declining for the third month in a row and hitting the lowest point since April 2020, as the momentum of postepidemic services recovery further weakened.”

AUD/USD eyes 0.7850

The dismal Chinese Services PMI numbers have little to no impact on the AUD bulls, as AUD/USD keeps its range near multi-day highs of 0.7838.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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