FX.co ★ China’s services sector expands

The Purchasing Managers’ index for China’s non-manufacturing sector increased to 52.8 in May versus 51.8 in April. According to Caixin/Markit, the index rose at the fastest pace in the past four months. Experts anticipated that the PMI would come in at 51.4.

At the same time, last month Chinese manufacturing PMI decreased to 49.6 from the previous reading of 50.3.

Zhengsheng Zhong, director of macroeconomic analysis at CEBM Group, said that a rise in the services activity contributed to faster economic growth in May. However, the expert expressed concerns over a slowdown in the manufacturing sector. He added that the gap between these two indicators may grow bigger.

Furthermore, the Chinese services sector expanded at the slowest pace in almost a year in April, as the business confidence was dented by concerns over an economic slowdown. Even a cut in input costs could not prevent the sentiment deterioration.