China's March service industry prosperity restoration continues to speed up. Caixin China General Service Industry Business Activity Index (PMI) recorded 57.8 and wrote a new high in 28 months.
According to China Caixin.com reported on Thursday (April 6), China ’s manufacturing and service industry recovered momentum in March, and the restoration of the service industry's prosperity continued to speed up.In March, the PMI of China ’s service industry PMI, an increase of 2.8 percentage points from February, was in the expansion range for three consecutive months.
The previously announced March Caixin China Manufacturing Purchasing Manager Index (Manufacturing PMI) recorded 50.0, a decrease of 1.6 percentage points from February, and fell to the Rongku Line.The service industry's activities accelerated the expansion, and the comprehensive PMI of Caixin China rose by 0.3 percentage points to 54.5.
The above trend is consistent with the PMI of the National Bureau of Statistics of China.According to data released by the National Bureau of Statistics on March 31, the manufacturing PMI recorded 51.9 in March, a decrease of 0.7 percentage points from the previous month. The PMI of the service industry increased by 1.3 percentage points to 56.9 from the previous month.A percentage point to 57, located in the high prosperity range, shows that the overall situation of Chinese enterprises' production and operation continues to improve.
Sub -item data shows that China's service industry in March is two prosperous.The rhythm of the market is accelerated, the service industry operating activities index and the new order index continue to rise within the expansion range, and at the same time, it has recorded a new high since December 2020.International travel restrictions have been lifted to help exports, and China's new export order index set the highest value since the record.Enterprises generally reflect that the restrictions on epidemic prevention, the operating conditions have improved, the number of customers has rebounded, and sales growth.
The employment index of China ’s service industry has also refreshed a new high since December 2020. The company expands the use of employment to respond to the rapid recovery of market demand, but it is still not enough to digest new orders for the market.The backlog workload of the service industry has risen for the eighth consecutive month. Enterprises generally indicate that it is related to the increase in new orders and the pressure of production capacity.
In terms of prices, the rise in raw materials and wages have promoted the rise in the cost of Chinese service industry enterprises, but they are subject to fierce market competition and limited price increase space for corporate charges.
Although the confidence of China's service industry has fallen slightly for two consecutive months, it is still significantly higher than the long -term average.Entrepreneurs expect demand to further increase, and new projects will also begin, full of confidence in the restoration of economic prosperity after relaxation of epidemic control measures.
Wang Yan, a senior economist of Caixin Think Tank, said that in March 2023, the recovery momentum of the Chinese manufacturing and service industry has differentiated, and the service industry recovery continues to speed up.The foundation of economic recovery is not firm, and endogenous growth is insufficient.Looking forward to the future, economic growth still depends on the boost of domestic demand, especially the improvement of residents' consumption level.Only by do everything possible to consolidate employment foundations, improve residents' income, and improve market expectations, can we implement the central government's recovery and expanding the established consumption goals.
