China's Private Sector Growth Weakest In 6 Months
April 05 2017 - 9:36PM
RTTF2
China's private sector expanded at the slowest pace in six
months in March as output in both manufacturing and services
weakened from February, survey data from IHS Markit showed
Thursday.
The Caixin composite output index fell to 52.1 in March from
52.6 in February. Nonetheless, a reading above 50 indicates
expansion in the sector.
Likewise, the services Purchasing Managers' Index dropped to a
6-month low of 52.2 in March from 52.6 in February.
At the composite level, new orders grew at the slowest pace in
four months, reflecting weaker increases in new work across both
monitored sectors. Service providers registered the weakest
increase in new business since last September. . The rate of job
creation in the service sector was the weakest seen thus far this
year and moderate overall. In contrast, manufacturing employment
declined again, albeit at a marginal pace that was little changed
from February.
At the composite level, unfinished workloads increased at the
slowest pace in seven months, survey results showed.
On the price front, composite input prices rose at a rate that,
though sharp, was the slowest since last October. Higher output
charges for both manufactured goods and services were reported in
March.
Chinese firms continued to express optimism towards the 12-month
business outlook in March. Although the overall degree of positive
sentiment edged down from February's recent peak, confidence
remained at one of its highest levels seen in the past two
years.
"Weaker increases in new business have clouded the economic
outlook, and investors should watch closely for signs of a turning
point in the second quarter," Zhengsheng Zhong, Director of
Macroeconomic Analysis at CEBM Group, said.
The government aims to achieve about 6.5 percent economic growth
in 2017, after expanding 6.7 percent in 2016.
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