China’s service sector expansion slows in April

BEIJING - A rating of 51.8 for the Caixin China Services Purchasing Managers’ Index in April shows the country’s services sector continued to grow, although the rate of expansion slowed slightly from March’s rating.

The Caixin China Composite PMI, which covers both the services and manufacturing sectors, remained above the neutral 50-point level at 50.8, marking a second consecutive month of expansion of overall business activity in China.

The number of new orders received by service providers grew in April at a faster pace than in each of the previous two months, leading to an increase in the number of employees. Although the rate of payroll expansion was marginal, it contrasted with a slight reduction in employment in March.

But the increase was more than offset by a reduction of work in the manufacturing sector, so overall employment conditions worsened in April.

Chief Economist He Fan of Caixin Insight Group said expansion in the services sector helped offset some of the impact caused by flagging manufacturing. “Overall, however, the economy still faces relatively strong downward pressure. The Government needs to keep implementing moderate stimulus to prevent a hard landing of the economy.”  www.webershandwick.cn (ATI).