China’s services sector continued to expand further in May signaling a strong recovery, according to the latest report jointly published by S&P Global and Caixin Insight.
The seasonally adjusted headline Business Activity Index arrived at 57.1 in May, rising 0.7 index points from the prior month to mark the second-steepest expansion rate since November 2020.
Meanwhile, Composite Output Index improved by 2 index points from April to land at 55.6 in May, at the most rapid pace since the end of 2020. “Production, demand and exports all expanded … In general, it remains a prominent feature of the Chinese economy that the services sector is stronger than manufacturing,” Caixin Senior Economist Dr. Wang Zhe said in the report. NN : Did I mention China is importing record amounts of oil…. AS their economy comes back from the dead.
Japan business activity surges in May
S&P Global revealed on Monday that Japan’s service sector activity further accelerated in May to hit an all-time high in the history of the series. The jump was primarily driven by an increase in customer demand as the effects of the COVID-19 pandemic continued to wane. The seasonally adjusted figure showed the Jibun Bank Japan Services Business Activity Index landing at 55.9, rising 0.5 index points in comparison to the last month’s reading. The Jibun Bank Japan Composite PMI Output Index arrived at 54.3 in May, increasing by 1.4 index points compared to April’s figure, signaling an accelerated boost. “The upward trend looks set to continue in the near and medium term, as capacity pressures meant that outstanding business also rose at a series record rate, while business optimism held close to the record high seen in April,” S&P Global Market Intelligence Economist Usamah Bhatti commented.