China Caixin Services and Composite PMI increased to 52.7 in March
The Purchasing Managers Index and Composite Index of China's Caixin Service Industry indicate an improvement in the demand environment.
This Wednesday, the Chinese economy once again became the focus.
In March, the Caixin China Service Industry Purchasing Managers Index (PMI) rose from 52.5 to 52.7. By contrast, economists predict a PMI of 52.7 in March.
The service industry activity has increased for the 15th consecutive month, but still below the long-term average level. The growth of new business has driven the expansion of the department's activities. The growth rate of new business is the fastest since December last year.
The growth rate of export business is the fastest in nine months. The improvement of the demand environment has supported a more positive outlook, with business confidence rising for three consecutive months. However, employment levels have declined for the second consecutive month.
Price pressure has eased to some extent. The increase in raw material, labor, and transportation costs has pushed up input prices. However, the inflation rate has further decreased, below the series average level. Therefore, the growth rate of sales prices is relatively slow.
After the better than expected performance of Caixin's manufacturing PMI data, the service sector PMI data boosted hopes for an improvement in the Chinese economy. The Caixin Composite PMI has risen from 52.5 to 52.7, with economists predicting a PMI of 52.7.
Next, during US trading hours, investors will focus on changes in US ADP employment and ISM service sector PMI data.
Economists predict that the ADP report showed an increase of 148000 jobs in March, compared to an increase of 140000 in February. However, economists predict that the ISM service sector PMI will rise from 52.6 to 52.7 in March.
Better than expected data may further affect investors' expectations for the Federal Reserve's interest rate hike in June.
In addition, investors must pay attention to the comments of FOMC members throughout the entire trading day. Federal Reserve Chairman Powell spoke on the schedule. FOMC members Michael Barr, Michelle Bauman, Austin Goolsby, and Adriana Kugler will also give speeches..
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