Caixin China Service Industry PMI rose to the high time in May to the year high

With the improvement of the supply and demand of the service industry, PMI, the service industry of Caixin China in May, has risen to high -year high.

According to the data published by Caixin.com (June 5th), May Caixin China General Service Industry Business Activity Index (PMI) recorded 57.1, an increase of 0.7 percentage points from AprilIt is high since December 2020, only below March 2023.

This number is higher than the May 31st May 31st May 31 service industry PMI 53.8%.50.9%of the manufacturing PMI recorded by Caixin in May is also higher than the officially announced 48.8%.

Caixin reported that after the optimization of the epidemic prevention policy, the previously suppressed demand was released. At the same time, the business status of the enterprise gradually resumed normalization and supported the expansion of recent business activities.

The employment of the service industry is still driven by the market supply and demand. The employment index of the service industry in May slightly dropped, but it is still located in the expansion range.The interviewed enterprises said that increasing employment is mainly because the market improves, and the need to increase production capacity and fill the vacancies.

It is reported that the cost of employment costs and raw materials prices has increased the cost of service industry, and the company has been forced to increase the price at the pressure of digestive costs. The previous relatively stable sales price index rose to the highest in the expansion range to March 2022.

Wang Yan, a senior economist of Caixin Think Tank, analyzed that in May, the PMI of Caixin China ’s service industry showed that the service industry was better as a whole, but employment and market expectations showed signs of weakening.In the PMI of Fortune New China, employment has deteriorated, the price level has dropped sharply, and optimistic expectations have also weakened.This highlights the fact that the current economic growth is insufficient in vitality and the confidence of market entities is not strong, and it is even more highlighted to expand and restore demand.

Wang Yan said that the current employment situation is severe and the pressure of shrinkage is accumulated. Through active fiscal policy, employment, increasing income, and improving expectations should be policy priority options.