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China’s Services Purchasing Managers’ Index (PMI) rose to 57.1 in May as against the 56.4 reading booked in April, the latest data published by Caixin showed on Monday. The market consensus for a reading of 57.1.
Key points
Business activity expands for fifth month running.
Robust and accelerated upturn in new orders.
Output charge inflation reaches 15-month high.
Commenting on the China General Services PMI ™ data, Dr. Wang Zhe, Senior Economist at Caixin Insight Group said: “Both services supply and demand expanded further in May. The gauges for business activity and total new orders both stood above 50 for the fifth consecutive month and logged their second-highest readings since November 2020.”
“External demand also maintained strong momentum, with the measure for new export orders staying in expansionary territory for five months in a row. Services activity continued to rebound after China scrapped its “zero-Covid” policy in December,” Wang added.
AUD/USD reaction
The in-line with expectations Chinese Services PMI bodes well for the Aussie Dollar, lifting AUD/USD back above 0.6600. The major is trading at 0.6604, at the time of writing, still down 0.21% on the day.
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