Just days after China posted better-than-expected Chinese Manufacturing PMI, the world’s second-largest economy has recorded further strong economic data.
Chinese services sector activity also posted better-than-expected growth in February.
The Caixin services purchasing managers’ index (PMI) increased to 55 in February. This was higher than January’s reading of 52.9 and was the fastest rate of growth in seven months.
February’s Chinese services sector PMI data also surpassed market expectations for an increase to 54.7 and is a keenly followed economic indicator. The Caixin survey focuses on smaller, private companies, and the latest data showed that Chinese companies largely benefited from the easing of pandemic-era restrictions at the end of last year and fewer disruptions in activity.
Wang Zhe, Senior Economist at Caixin Insight Group said in a note accompanying the data:
“There was still a lot of optimism in the services sector in February as business owners continued to express great confidence in an economic recovery upon the easing of COVID controls.”
Wang Zhe, Senior Economist at Caixin Insight Group
China on the Path to Recovery
After Chinese government officials declared a “decisive victory” over COVID, China, it seems, is well and truly on the road to economic recovery.
China endured one of its worst economic years on record in 2022 as tight COVID restrictions, increased energy costs, and reduced global demand hit the Chinese economy.
Now, with the People’s Bank of China determined to keep interest rates at their record lulls, the green shoots of recovery are starting to be seen. Last month’s growth in manufacturing activity was the highest for over a decade and the latest services data further underscores Chinese economic growth.
