Caixin services PMI for China in March at six-month low of 52.2

by Dramelin 12:30 AM 0 comments

China needs to open up its markets to US companies: Gary Locke    16 Hours Ago | 00:55 In Thursday`s private services survey subdued business demand pulled down the headline PMI index.
There are concerns China`s real estate sector - a big growth-driver for sectors from construction to banking - could become a drag on the broader economy as they were hit with fresh waves of housing policy curbs in mid-March.
The new business sub-component slipped 1.
1 percentage points to 52.
2 in March, the weakest demand for China`s service providers since September 2016.
"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 in a note.
Lukewarm growth may also suggest consumers in the world`s second-largest economy are cutting back on spending, highlighted by disappointing revenue reports at some of the nation`s top consumer firms.
Retail sales growth was well below expectations in the first two months of the year as auto sales dipped.
Cost pressures also rose sharply as input prices soared to their highest point in more than four years, although firms were able to pass on part of the costs to customers with a modest increase in prices charged.