In February, The PMI Of Caixin China'S Service Industry Dropped To 51.1, The Lowest In Four Months.

In March 5th, Caixin's general service industry activity index (PMI) in February was 51.1, down 2.5 percentage points from January, the lowest since November 2018, and lower than the historical average.

Previously announced in February, Caixin China manufacturing PMI rebounded sharply by 1.6 percentage points to 49.9, a three month high. However, it was dragged down by the sharp drop in the service sector, and the comprehensive PMI of Caixin continued to fall 0.2 percentage points to 50.7, a four month low.

The trend of service industry and comprehensive PMI in Caixin China is consistent with that of Statistical Bureau PMI.

In February, the National Bureau of Statistics announced the business activity index of service industry was 53.5, a slight decrease of 0.1 percentage points, and consolidated PMI recorded 52.4, a 0.8 percentage point drop.

Demand for services and manufacturing rose one by one in February.

The total number of new orders in the service sector is relatively low, slowing to the lowest level since November 2018. Some enterprises are relatively weak in demand. The total volume of new orders in manufacturing industry has rebounded for the first time in three months, but the growth rate is still small.

The two combination, the overall growth rate of new orders in February has accelerated slightly, but the overall growth rate is still at a low level.

Export sales have fallen slightly because of the slump in foreign demand.

The main reason for the sluggish export sales is the re export of manufacturing exports to the contraction zone. The total number of new export orders in the service industry has increased for five consecutive months, but the growth rate has slowed to the lowest level in five months.

The employment performance of the two industries is divided.

The expansion of service industry led to a slight increase in the scale of employment in the service industry for five consecutive months, but the growth rate slowed slightly.

In February, the scale of comprehensive employment returned to the contraction area.

In February, the input cost of the service industry continued to rise slightly, or slightly faster than the beginning of the year.

According to the respondents, the increase in cost is mainly related to the price of raw materials and the rise in pay.

The cost of manufacturing industry dropped for the three month in a row.

The two industries were consolidated, and the cost of investment increased moderately. The increase was somewhat higher than the three year low in January.

The further rise in costs has led to a slight increase in service charges for five consecutive months, but the whole is still moderate.

Manufacturing factory prices also rose slightly, rising for the first time in four months.

Respondents generally said that the increase was related to the improvement of overall demand.

The confidence of the two major industries in the next 12 months in terms of production and business prospects declined slightly compared with that in January, but the overall expectation remained optimistic.

Confidence in the service sector dropped to a three month low.

The survey shows that the industry's confidence is mainly due to the advent of new products and expansion of the company.

Investment growth and market conditions are expected to improve.

Zhong Zhengsheng, chairman and chief economist of the new financial think-tank, said that in February, the domestic demand for manufacturing industry was more obvious. However, under the pressure of employment situation, the service industry was obviously declining.