Key Points:
- China’s services sector activity reached its highest level in three months in March.
- The Caixin/S&P Global PMI for services rose to 51.9 points from 51.4 in February.
- This marks the highest reading since December, aligning with official data showing a rise to 50.3 points from 50.
Economic Indicators:
- The services PMI indicated robust growth in China’s economy, prompting Standard Chartered to upgrade its Q1 GDP forecast to 5.2% from 4.8%.
US Trade Tensions Impact
President Donald Trump’s announcement of a 10% tariff on all US imports and higher taxes on several countries could negatively affect economic activity.
Japan’s Services Sector Stagnates
- Japan’s services industry saw no growth in March, while the broader private sector contracted at its fastest pace in over two years.
- The Jibun Bank PMI for services fell to a neutral 50 points from February’s six-month high of 53.7.
Implications:
- This slowdown in the services sector is a concern for Japan, which relies on it to support overall economic growth and offset weak manufacturing performance.
Source: S&P Global Intelligence
