China’s Services Activity Soars Amid Post-Covid Optimism, Caixin PMI Shows

The independent snapshot of operating conditions in services industries jumped to 57.8 in March from 55 the previous month

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Growth in activity across China’s services sector hit a 28-month high in March, with supply, demand and employment all improving further after the government lifted “zero-Covid” controls, a Caixin-sponsored survey showed Thursday.

The Caixin China General Services Business Activity Index, which gives an independent snapshot of operating conditions in services industries such as retail and travel, soared to 57.8 in March — a high not seen since November 2020 — from 55 the previous month. A number above 50 indicates an expansion in activity, while a figure below signals a contraction.

The index, also known as the Caixin China services PMI, is one of the earliest available monthly indicators of business activity in the world’s second-largest economy. The services sector accounted for 53% of China’s GDP last year, according to government data.

The uptrend in the sector diverged from the Caixin China manufacturing PMI for March, released on Monday, which stood at the neutral level of 50 after expanding in February for the first time in seven months. The Caixin China General Composite PMI, which comprises manufacturing and services, came in at 54.5 in March, up 0.3 points from the previous month.