China’s services sector expanded at the fastest pace in three months in March as companies’ optimism jumped to a 10-year peak, a Caixin-sponsored survey showed on Tuesday.
The Caixin China General Services Business Activity Index, which gives an independent snapshot of operating conditions in the services sector, rose to 54.3 in March from 51.5 the previous month.
A number above 50 indicates an expansion in activity, while a figure below that points to a contraction. The index, better known as the Caixin China services PMI, shows that services activity has expanded for 11 straight months.
Total new business in the services sector rose at the quickest pace in three months in March, although new export business continued to fall. That suggested the increase in total new business was mainly driven by stronger domestic demand, the survey said. The ongoing Covid-19 pandemic continued to dampen new orders from overseas, some surveyed companies said.