China's Caixin services PMI drops unexpectedly in March

China's Caixin services PMI for March came in at 52.3 vs 54.5 exp and 54.2 last, which indicated output growth easing across both manufacturing and service sectors.

Meanwhile, the Composite Output Index fell from 53.3 in February to 51.8 in March, to signal only a modest pace of expansion.” the report noted. 

Quotes from Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group

“The Caixin China General Services Business Activity Index fell to 52.3 in March from 54.2 in February. Both new business and employment grew at a slower rate last month, pointing to cooling demand. However, the ability of service providers to make a profit improved as input costs increased at a weaker pace while output prices edged up. The sub-index gauging service companies’ expectations towards business activity over the next 12 months declined to the lowest reading since September, suggesting that weakening demand has affected firms’ confidence.”