China services activity expands faster than expected in Feb - Caixin PMI

Published 05/03/2025, 03:02

Investing.com-- China’s services sector grew more than expected in February driven by a combination of higher domestic demand, the start-up of new projects, and promotional work, private purchasing managers index data showed on Wednesday.

The Caixin services PMI came in at 51.4 in February, above expectations for a 50.8 print. The reading was higher than the 51.0 seen in January.

A reading above 50 indicates expansion, with services activity now expanding for the 26th consecutive month.

"Both supply and demand grew. Amid an improving economic environment, service providers continued to roll out new products and ramp up their promotional efforts," Wang Zhe, Senior Economist at Caixin Insight Group said.

Recent PMI data showed the manufacturing sector expanded at a faster-than-expected pace in February.

The data comes a day after the U.S. President escalated trade tensions by doubling tariffs on Chinese imports to 20%.

Concurrently, China’s National People’s Congress (NPC) commenced its annual session on March 5, 2025, with markets anticipating new stimulus measures to bolster the economy amid these heightened trade tensions.

"Service firms were generally optimistic about the economic outlook for the coming year and planned to take more aggressive measures to boost sales," Zhe added.

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