China Services PMI

The Caixin China General Services PMI increased for the first time in three months to 52.7 in March 2024 from February's three-month low of 52.5, matching market forecasts. It was the 15th straight month of growth in services activity, with new business rising at the fastest pace in the year-to-date. New order growth accelerated amid improvements in demand conditions and business development efforts, with export orders rising the most in nine months. Employment fell for the 2nd straight month, though the rate of job shedding eased from February and was only marginal while the backlog of work declined. On the cost side, input prices rose due to higher raw material, labor, and transport costs despite the inflation easing further below the series average. Meanwhile, output price inflation slowed but remained slightly above their long-term trend. Lastly, sentiment improved for the first time in three months amid hopes of launching new products, expansion plans, and rises in client budgets.