The HSBC China services PMI is out and firmed to 53.5 from 52.9. 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%.”
