China's Caixin services PMI remains unchanged at 52.9 in May, matches estimates

China's Caixin services PMI for May came in at 52.9 vs 52.9 exp and 52.9 last, which showed that the business activity growth remained modest last month.

Meanwhile, the Composite Output Index was also unchanged from April’s reading of 52.3, which signaled a steady and moderate pace of expansion.

Quotes from Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group

“The Caixin China General Services Business Activity Index stood at 52.9 in May, unchanged from the previous month's reading. The employment index continued to rise, while the new business index slipped slightly, indicating a positive change on the supply side and marginally weaker demand across the service sector. The changes led to a softer rise in prices charged, easing the upward pressure on service prices. However, input costs rose at a faster pace after slowing for three consecutive months, suggesting that the upward pressure on costs has not completely eased. The index of business expectations, a gauge of service providers’ confidence towards the 12-month outlook for activity, improved noticeably, reaching its highest since June 2017, indicating that companies were confident about their prospects.”