China HSBC May Services PMI: 53.5 (prior 52.9) & Composite: 51.2 (prior 51.3)

China HSBC PMIs for May

Services 53.5

• prior was 52.9

Composite 51.2

• prior was 51.3

Annabel Fiddes, Economist at Markit:

• "Latest China PMI data saw a strong service sector performance offset a deteriorating outlook at manufacturers, leading to a modest rise in overall business activity
• Furthermore, service providers saw the strongest upturn in new business for three years in May, which supported sharper growth of activity and employment
• In contrast, manufacturing companies continued to trim their payroll numbers as both output and new orders contracted over the month
• Overall, growth momentum appears relatively weak, weighed down by an ongoing deterioration in manufacturing operating conditions, therefore further stimulus measures may be required to keep up with an annual GDP growth target of 7%."