Key insights
- China's service sector growth slowed in March, with the RatingDog Services PMI falling to 52.1 from 56.7 in February. While still in expansion, softer demand and job cuts weighed on activity. External demand weakened, with new export business slipping back into contraction. This slowdown in a major global economy could have a slightly negative impact on US equities.
Investing.com-- China’s services sector growth slowed in March, but remained in expansion territory, as softer demand momentum and continued job cuts weighed on activity, a private survey showed on Friday.
The RatingDog Services PMI fell to 52.1 in March from a 33-month high of 56.7 in February, missing expectations of 53.6.
The reading stayed above the 50-mark separating growth from contraction, extending the current expansion streak to 39 months.
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The moderation followed February’s strong pace, with business activity and new orders still rising but at a slower rate. Survey compilers said domestic demand remained the key growth driver, supported by new projects, client referrals, and an expanding customer base.
However, external demand weakened, with new export business slipping back into contraction after gains earlier this year.
Despite continued increases in new work and backlogs, firms reduced staffing for a second straight month, citing cost control measures, including non-replacement of departing workers and restructuring.
Cost pressures remained relatively subdued, allowing companies to cut selling prices to stay competitive.