FX.co ★ China Services Growth Hits 3-Month High

The Caixin China General Services PMI experienced an uptick to 51.9 in March 2025, advancing from February’s figure of 51.4, and surpassing market expectations set at 51.6. This indicates the most robust expansion in the services sector since December of the previous year. The surge was primarily driven by a substantial increase in new orders—the highest in the last three months—catalyzed by domestic demand bolstered through effective marketing strategies and a general improvement in demand conditions. Despite this positive trend, employment witnessed a slight decline, with the rate of job reductions accelerating to its fastest in nearly a year. In terms of pricing, input costs rose following a marginal decrease the month prior, attributed to heightened staff expenses and increased supplier charges. Conversely, output prices decreased for the second consecutive month due to intensified market competition. Lastly, business sentiment softened as concerns regarding global economic and geopolitical developments persisted.