China’s May services PMI is out and registered solid growth:
May data signalled another month of business activity growth in China. This was signalled by the HSBC Composite Output Index posting a plus-50 reading for the second month in a row (51.9 compared to 51.4 in April). Although only modest, the rate of expansion in business activity was the sharpest in seven months.Activity growth at the composite level was supported by a stronger expansion of services output. The rate of activity growth was marked, and the sharpest in 19 months. At 54.7, however, the latest seasonally adjusted HSBC Business Activity Index reading was below the long-run trend for the series (56.7).
New business wins were often cited by panellists as the main factor behind the latest increase in services output. Indeed, the pace of new order growth was marked, and the fastest since October 2010. Composite data meanwhile pointed to a marginal expansion of incoming new business.
