China’s Caixin PMI decreases in April

Index that characterises China’s services sector fell in April, signaling that uncertainty over economic stability had risen.

China’s PMI calculated by Caixin and Markit fell in April by 0.4 bp to 51.8. In general, it remains above a threshold at 50.0, which may point on some moderate activity. From the other side, growth of this index shows that activity is falling.

According to comments left by Caixin, non-manufacturing activity smoothed a negative impact from weak manufacturing. However, strong downside pressure on economy preserves.  China’s government continues to implement measures of stimulation to secure the economy from hard landing.

Despite weak growth of services PMI, it was fixed a growth of subindices which characterise employment and new orders in this sector.

Services sector supported weakening China’s economy, main economic sectors of which had faced sharp reduction of activity and low capacity on the background of weak demand. Services sector took 50.4% of GDP in 2015 versus 48.1% a year before.

Standard non-manufacturing PMI decreased in April by 0.3 bp to 53.5.