China Caixin services PMI: Growth softens slightly in April

China Caixin April services PMI came at 51.8 vs 52.6 expected and 52.2 last, which represents a second consecutive month of expansion. Meanwhile, the composite reading stood at 50.8, down from 51.3.

Commenting on the China General Services PMI™ data, Dr. He Fan, Chief Economist at Caixin Insight Group said: “The headline Caixin China General Services PMI for April came in at 51.8, down 0.4 points from March, but the employment category picked up strongly and rose to above the neutral 50-point mark. The Caixin China Composite Output Index for April was 50.8, still above the neutral mark, but down 0.5 points from the previous month. Expansion in the services sector helped offset some of the impact caused by flagging manufacturing. Overall, however, the economy still faces relatively strong downward pressure. The government needs to keep implementing moderate stimulus to prevent a hard landing of the economy.”