From HSBC the China services PMI up 0.6 points to 52.9:
- The latest set of PMI data indicated that Chinese service sector companies had a strong start to Q2, with activity and new orders both rising solidly in April. However, a downturn in manufacturing operating conditions led to a weaker expansion of overall business activity in April, with composite output rising at the slowest rate in three months.
- Furthermore, sustained job shedding at manufacturing firms offset a modest rise in service sector staff numbers, leading total employment to fall for the second month in a row.
- This suggests that, despite recent stimulus measures, such as cuts to banks’ reserve ratios and lending/deposit rates, more measures may be required to ensure the economy does not slow further from the 7% annual pace of growth registered in Q1.