(Reuters) – China’s services sector returned to growth last month for the first time since January, as the economy recovers from tight coronavirus-induced containment measures, although employment and demand are stranger remained weak, private survey finds
The PMI Caixin Services
GROWING CAIXIN / MARKIT MAY IN CHINA PMI RETURNED TO 55.0 (US 44.4 IN APRIL), HIGHEST SINCE 2010
- 02-Jun-2020 19:45:11 – PMI OF CHINA MAIN CAIXIN / MARKIT SERVICES SHOWS EXPORT ORDERS, JOB IS ALWAYS CONTRACTING
AUD still below today’s highs.
Description of PMI Caixin Services
PMI Caixin Services is based on data compiled from monthly responses to questionnaires sent to purchasing managers in more than 400 private sector companies. The panel was carefully selected to accurately reproduce the true structure of the service economy.
The official index of purchasing managers of Chinese manufacturers as well as a private survey published recently showed that manufacturing activity in the country was expanding in May. This gives markets hope that other economies will follow in the footsteps of the country as a model for a V-shaped global economic recovery. However, global unemployment figures are not the basis of a healthy economic environment. The double-digit numbers in the United States and Europe as well as in advanced countries like Australia at the end of this year could prove to be the death knell for risk appetite. If countries have to turn locks on and off when they are worried about second waves of viral infection, it will also slow market performance.