|Composite - Level||51.3||49.4|
|Services - Level||52.2||51.2|
The March composite PMI signaled a renewed increase in overall Chinese business activity with a reading of 51.3, up from 49.4 and the highest reading in 11 months. March survey data pointed to a modest rebound in overall Chinese business activity, driven by slightly stronger growth of services activity and a renewed expansion of manufacturing output.
The general services PMI reading was 52.2, up from 51.2. The reading continued to point to a modest rate of expansion that was slower than the series average. Meanwhile, manufacturing output returned to growth after an 11-month sequence of stagnant or reduced production, though the rate of growth was only marginal.
New orders rose modestly at service providers, with the rate of growth little-changed from the previous month. Some respondents commented that improving underlying market conditions had helped to secure new work. Meanwhile, goods producers saw the first rise in new business since June 2015. As was the case with output, however, the rate of expansion was only slight. At the composite level, new business rose at a rate that, though modest, was the strongest recorded in ten months.
The Caixin China Services PMI is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 private service sector companies. The panel has been carefully selected to accurately replicate the true structure of the services economy.
The Caixin China Composite PMI is a weighted average of the Manufacturing Output Index and the Services Business Activity Index, and is based on original survey data collected from a representative panel of over 800 companies based in the Chinese manufacturing and service sectors.
The PMIs have developed an outstanding reputation for providing the most up-to-date possible indication of what is really happening in the private sector economy by tracking variables such as sales, employment, inventories and prices. The indexes are widely used by businesses, governments and economic analysts in financial institutions to help better understand business conditions and guide corporate and investment strategy. In particular, central banks in many countries use the data to help make interest rate decisions. PMI surveys are the first indicators of economic conditions published each month and are therefore available well ahead of comparable data produced by government bodies.
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