The S&P Global PMI composite index for China fell from 54.5 in March to 53.6 in April, indicating that China's economy expanded for the fourth consecutive month but at a slower pace, with conditions moderating across major sectors. The business activity index for China's services sector, also published today, fell from 57.8 in March, its highest level since late 2020, to 56.4 in April, while the manufacturing PMI survey, released earlier in the week, showed a fall in its headline index from 50.0 to 49.5. Official CFLP PMI survey data released last weekend also showed renewed contraction in the manufacturing sector and strong but somewhat slower growth in the non-manufacturing sector in April.

Respondents to the service sector survey reported strong but slightly smaller increases in output, new orders, and new export orders in April, with an easing of public health restrictions continuing to support demand. Payrolls were also reported to have increased at a slower pace while the survey's measure of confidence fell to a four-month low. Respondents reported stronger growth in input costs but only a marginal increase in selling prices.

S&P's services PMI in April is expected to slow slightly to 57.4 versus March's solid rise to a strong 57.8.

The S&P 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 S&P 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.