Caixin’s monthly services PMI report points to stable growth in China’s services industry in May, with inflation easing and business sentiment reaching a one-year high.
The index remained unchanged from April’s reading of 52.3, where 50 marks neither expansionary nor contractionary behaviour in the sector.
The survey’s respondents reported strong client demand and a reduction of backlogs as employers took on new staff. Increased competition reined in inflation despite increases in input costs for the month.
The index includes China’s finance, real-estate, retail, marketing, and transport industries – otherwise known as the tertiary sector. A growing component of China’s economy, services contributed to over half of the nation’s GDP over the last three years, according to the National Bureau of Statistics.