| Consensus | Consensus Range | Actual | Previous | |
| Composite Index | 53.1 | |||
| Services Index | 52.2 | 52.2 to 52.5 | 54.4 | 52.6 |
Highlights
China's services sector activity accelerated in May, backed by broad-based growth in new business and employment. The S&P Global purchasing managers index for the sector rose to 54.4 from 52.6 in April, surpassing the economist forecast range of 52.2 to 52.5. It was the highest since 56.7 marked in February.
Service providers saw the inflation rate rising to the highest since October 2024 in light of higher fuel prices and wages but S&P noted that overall cost pressures remained below the long-run survey trend.
Business sentiment regarding the 12-month outlook for activity remained optimistic, with the degree of confidence exceeding the rolling 12-month average, S&P said. Optimism was linked to improved market conditions, new projects and a brighter economic outlook.
Market Consensus Before Announcement
Services expected to expand at 52.2 in May versus 52.6 in April.
Definition
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.
Description
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.