| Consensus | Consensus Range | Actual | Previous | |
| Composite Index | 52.1 | 50.8 | ||
| Services Index | 50.6 | 50.5 to 50.8 | 51.4 | 50.4 |
Highlights
The S&P Global PMI survey for China shows conditions improved in August, with the composite index falling to 52.1 from 50.8 in July. The business activity index for China's services sector, also published today, rose to 51.4 in August from 50.4 in July, with the manufacturing sector PMI, published earlier in the week, also showing stronger conditions.
Respondents to today's service sector survey reported faster growth in output and new orders, and a fourth consecutive increase in new export orders. Payrolls were also reported to have risen for the fourth consecutive month, but the survey's measure of confidence rose from its lowest level since early 2020. Respondents also reported a bigger increase in input costs and a steady increase in selling prices.
Definition
The S&P China Services Purchasing Managers' Index (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.