Thought for the day

The Chinese Services Sector Continues to Grow in March

But overall growth is being held back by the lacklustre manufacturing sector


 
28 April 2024
 
Sales Managers Index (Manufacturing & Services)
Diffusion Index. (50 = 'No Growth')
The Chinese Services Sector Continues to Grow in March


The marked difference between the Chinese Services and Manufacturing sectors performance continues to remain in evidence. Over the whole of the first quarter of 2024 the overall Manufacturing Sector Sales Managers Index remained below the crucial 50 index level, indicating declining output. In contrast the Services Sector overall Sales Managers Index remained at an average index reading over the first quarter of 52.4, indicating significant albeit far from exciting growth in output.. The now dominant Services sector resilience provided enough impetus to ensure that the combined Manufacturing + Services sector Index remained over the 50 no growth level, with a very modest quarter 1 reading of 50.9, indicating overall growth in the Chinese economy.

However the Manufacturing & Services reading suggests that economic growth in China remains way below the levels of GDP registered in previous years.
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