The Caixin China General Services PMI declined to 56.4 in April 2023 from March’s 28-month high of 57.8, pointing to the fourth straight month of expansion in the sector, after lifting COVID-19 restrictions although expansion slowed slightly, as new orders growth eased. Meanwhile, employment continued to rise, boosted by plans to increase capacity and greater new order volumes.
Employment growth slowed and backlogs continued to build, with the PMI Composite index falling from 54.5 to 53.6.
That said, the rate of job creation slipped to a modest pace that was the softest seen in the current three-month period of payroll growth, while backlogs of work continued to rise.
The rate of accumulation was similar to that seen in the prior month, however, and only mild.
On the price front, input cost inflation accelerated to a 12-month, due to higher staffing costs, alongside greater prices for raw materials and office supplies.
Meantime, output cost inflation rose only slightly as firms south to boost competitiveness and attract sales.
Finally, business sentiment deteriorated to a four-month low.
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