China's Caixin services PMI rises to 53.9 in May, a big beat

China's Caixin services PMI for June came in at 53.9 vs 52.7 exp and 52.9 last, which showed that Chinese business activity continued to expand at the end of the second quarter.

Meanwhile, the Composite Output Index also jumped to 53.0 in June from May’s reading of 52.3, signalling a solid rate of growth that was the steepest recorded since February.

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

“The Caixin China General Services Business Activity Index stood at 53.9 in June, rising significantly from the previous month. The employment and new business indices both climbed moderately, pointing to a positive trend in the service supply and demand sides. Input costs rose more than prices charged, putting pressure on service providers‘ confidence. The index of business expectations, a gauge of companies’ confidence towards the 12-month outlook, dipped from a recent high seen in May.”