China's Caixin services PMI rises to 54.5 in April, a positive surprise

China's Caixin services PMI for April came in at 54.5 vs. 52.8 expected and 54.4 last, which showed that the Chinese business activity continued to rise strongly during April

Meanwhile, the Composite Output Index eased to 52.7 in April from March’s reading of 52.9 – nine-month highs.

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

“The Caixin China General Services Business Activity Index inched up to 54.5 in April from the previous month’s recent high of 54.4. Among the gauges included in the survey:

1) The gauge for new business dipped marginally from the past month’s recent high, reflecting continued strong demand across the services sector. 2) The measure for employment rose to its highest since June, suggesting an acceleration in jobs growth. 3) Gauges for input costs and prices charged by services providers rebounded. Faster growth in input costs was negative for companies to improve profits. 4) The measure for business expectations fell despite staying in positive territory, reflecting services providers’ weakening confidence in their future prospects.”