Latest news with #CaixinPMI
Yahoo
9 hours ago
- Business
- Yahoo
U.S. tariffs slowed down China's manufacturing in May
A new survey of Chinese manufacturers released Tuesday showed factory activity shrank in May, dropping to the lowest level in nearly three years after a barrage of tariffs from the Trump administration dented the sector. The data from Caixin Media Co. and S&P Global (SPGI) said the Caixin/S&P Global manufacturing purchasing managers' index slipped to 48.3 last month from 50.4 in April. 'Overall, in May, manufacturing supply and demand declined, dragged by overseas demand,' Wang Zhe, a Caixin Media Group economist, said in the report. It was the lowest recorded reading since September 2022. The Caixin PMI is used to measure Chinese manufacturing activity, and the 50-mark designates the border between expansion and contraction. The decline was the result of a sharp reduction in new manufacturing orders, per the Caixin report. Chinese factory output also fell for the first time in 19 months, breaking a prolonged stretch of growth. A positive indicator in the report was a slight improvement in business optimism, as Chinese companies expressed confidence that trade tensions between the U.S. and China will cool in the near future. They also showed optimism in their ability to secure new markets for exports. President Donald Trump initially imposed triple-digit levies on China in April, and scaled it back a month later to 30% after a preliminary agreement to continue talks towards a bigger trade deal was secured. China maintains a 10% tariff on U.S. products. Those negotiations appear to be stuck in neutral at the moment, and both countries have accused one another of violating the early accord. White House Press Secretary Karoline Leavitt said on Monday that it was likely that Trump and Chinese President Xi Jinping would speak this week. Meanwhile, the Organization for Economic Cooperation and Development said in another report released Tuesday that Trump's sweeping import taxes are boomeranging to damage the U.S. economy. The group projected U.S. GDP growth to reach 1.6% in 2025, a sharp decrease from its original projection of 2.2%. For the latest news, Facebook, Twitter and Instagram.
Free Malaysia Today
06-05-2025
- Business
- Free Malaysia Today
Chinese holiday spending inches up, but trade war weighs on services
China's tourism ministry recorded 314 million domestic trips during the May Day holiday, an increase of 6.5%. (EPA Images pic) BEIJING : Chinese travellers' spending rose 8% year-on-year during the May Day holiday to ¥180.27 billion (US$24.92 billion), but was still off pre-pandemic levels, while the country's services activity expanded at the slowest pace in seven months in April. The May Day holiday, one of the country's longest, is closely watched as a barometer of Chinese consumer confidence. Consumption in the world's second-largest economy has suffered amid a sputtering economy and prolonged property crisis, and the fallout from the US-China trade war is set to deepen the pain. China's tourism ministry recorded 314 million domestic trips during the holiday, an increase of 6.5%, while the number of transactions using Weixin Pay, a popular payments app, rose by more than 10% year-on-year, with a notable increase in restaurant spending. However, total spending per head over the five-day May holiday period, a typically busy time for family travel, rose just 1.5% to ¥574.1, Reuters calculations based on official data showed. It remains below 2019 levels when per capita spending was ¥603.4. Cinemas suffered a significant drop in ticket sales, with the box office haul over the five-day holiday at ¥747 million, only about half of the same period in 2024. Growth slackening Meanwhile, China's services sector saw new order growth slacken from March, weighed by uncertainty caused by US tariffs, a private sector survey showed today. Despite stronger-than-expected economic growth in the first quarter, supported by government stimulus, China's economy continues to face persistent deflationary risks. The Caixin/S&P Global services purchasing managers' index (PMI), fell to 50.7 from 51.9 in March, its lowest reading since September. The 50-mark separates expansion from contraction. This was broadly in line with China's official survey, which showed services activity easing to 50.1 from 50.3 in the previous month. The Caixin PMI is considered a better read of trends among more export-oriented and smaller firms. The Caixin services survey showed new business growth slowed to its weakest since December 2022, though export orders edged up slightly, partly due to a tourism recovery. 'The drop in the Caixin PMI provides 'further evidence that the trade war is weighing on economic activity in China, even beyond the manufacturing sector,' said Zichun Huang, China economist at Capital Economics. 'While some caution is clearly warranted, we suspect that firms are overestimating how much damage US tariffs will do,' she said. About 48% of employees in China worked in the services industry in 2023 and the sector contributed 56.7% to total GDP last year. However, US President Donald Trump's trade actions may hit the manufacturing sector hard and hurt business hiring plans and consumer confidence. Business sentiment in the services sector grew at the slowest pace since February 2020, with companies citing US tariffs as a major concern. Service providers cut jobs for the second straight month to curb costs, leading to a rise in work backlogs, pushing the corresponding gauge into expansionary territory for the first time this year. Firms also reduced prices to attract customers despite higher input costs. Lynn Song, chief economist at ING in Hong Kong, said that unlike government support policies for specific products such as appliances through a trade-in policy, there has been 'limited support to boost services consumption so far'. 'To bolster domestic demand, consumption vouchers could be a short term boost, while improving the quality, availability, and range of services over the long term remained key,' she said. 'For consumption as a whole, it is important to restore consumer confidence to unlock savings, starting with restoring a positive wealth effect and exiting the contractionary mindset to resume reasonable wage growth,' she added.
Economic Times
06-05-2025
- Business
- Economic Times
China's services growth hits 7-month low as tariffs bite, Caixin PMI shows
China's services sector experienced its slowest expansion in seven months in April, as the Caixin PMI fell to 50.7, impacted by U.S. tariffs and subdued business sentiment. New business growth weakened, leading to job cuts and price reductions by service providers. Policymakers are urged to take action to mitigate the effects of the ongoing trade standoff. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads China's services activity expanded at the slowest pace in seven months in April, with new orders growth slackening from March, weighed by uncertainty caused by U.S. tariffs, a private sector survey showed on Caixin/S&P Global services purchasing managers' index (PMI), fell to 50.7 from 51.9 in March, its lowest reading since September. The 50-mark separates expansion from was broadly in line with the official survey, which showed services activity easing to 50.1 from 50.3 in the previous month. The Caixin PMI is considered a better read of trends among more export-oriented and smaller stronger-than-expected economic growth in the first quarter, supported by government stimulus, China's economy contends with persistent deflationary risks, a protracted property slump, and threats from U.S. 48% of employees in China worked in the services industry in 2023 and the sector contributed 56.7% to total GDP last year. But U.S. President Donald Trump's trade actions may hit the manufacturing sector hard and hurt business hiring plans and consumer confidence."With a cloud over the market outlook, both business and consumer confidence are subdued, making it harder to boost domestic demand," said Wang Zhe, Senior Economist at Caixin Insight Group."The ripple effects of the ongoing China-U.S. tariff standoff will gradually be felt in the second and third quarters. As such, policymakers should prepare well and take action sooner rather than later," said Caixin services survey showed new business growth slowed to its weakest since December 2022, though export orders edged up slightly, partly due to tourism recovery. Some service providers cited disruptions from U.S. tariffs impacting goods sentiment in the services sector grew at the slowest pace since February 2020 with companies citing U.S. tariffs as a major providers cut jobs for the second straight month to curb costs, leading to a rise in backlogged work, pushing the corresponding gauge into expansionary territory for the first time this reduced prices to attract customers despite higher input Caixin China General Composite PMI fell to 51.1 in April from 51.8 the previous month, the ruling Communist Party's Politburo pledged to support firms and workers most affected by the impact of triple-digit U.S. tariffs and urged the country to prepare for worst-case at Morgan Stanley said last week that second quarter growth could slow one percentage point as tariffs bite."We expect Beijing to navigate the challenges with cautious and uneven stimulus policies: still relying on investment in emerging sectors and urban renewal, while gradually shifting policy towards consumption over the medium term," Morgan Stanley said in a research note. (Reporting by Liangping Gao and Ryan Woo; Editing by Sam Holmes)
The Star
06-05-2025
- Business
- The Star
Chinese holiday spending inches up but trade war weighs on services
BEIJING: Chinese travellers' spending rose 8% year-on-year during the May Day holiday to 180.27 billion yuan (US$24.92 billion), but was still off pre-pandemic levels, while the country's services activity expanded at the slowest pace in seven months in April. The May Day holiday, one of the country's longest, is closely watched as a barometer of Chinese consumer confidence. Consumption in the world's second-largest economy has suffered amid a sputtering economy and prolonged property crisis, and the fallout from the US-China trade war is set to deepen the pain. China's tourism ministry recorded 314 million domestic trips during the holiday, an increase of 6.5%, while the number of transactions using Weixin Pay, a popular payments app, rose by more than 10% year-on-year, with a notable increase in restaurant spending. But total spending per head over the five-day May holiday period, a typically busy time for family travel, rose just 1.5% to 574.1 yuan, Reuters calculations based on official data showed. It remains below 2019 levels when per capita spending was 603.4 yuan. Cinemas suffered a significant drop in ticket sales, with the box office haul over the five-day holiday at 747 million yuan, only about half of the same period in 2024. Meanwhile, China's services sector saw new order growth slacken from March, weighed by uncertainty caused by US tariffs, a private sector survey showed on Tuesday (May 6). Despite stronger-than-expected economic growth in the first quarter, supported by government stimulus, China's economy continues to face persistent deflationary risks. The Caixin/S&P Global services purchasing managers' index (PMI), fell to 50.7 from 51.9 in March, its lowest reading since September. The 50-mark separates expansion from contraction. This was broadly in line with China's official survey, which showed services activity easing to 50.1 from 50.3 in the previous month. The Caixin PMI is considered a better read of trends among more export-oriented and smaller firms. The Caixin services survey showed new business growth slowed to its weakest since December 2022, though export orders edged up slightly, partly due to a tourism recovery. The drop in the Caixin PMI provides "further evidence that the trade war is weighing on economic activity in China, even beyond the manufacturing sector," said Zichun Huang, China economist at Capital Economics. "While some caution is clearly warranted, we suspect that firms are overestimating how much damage U.S. tariffs will do," she said. About 48% of employees in China worked in the services industry in 2023 and the sector contributed 56.7% to total GDP last year. But U.S. President Donald Trump's trade actions may hit the manufacturing sector hard and hurt business hiring plans and consumer confidence. Business sentiment in the services sector grew at the slowest pace since February 2020, with companies citing US tariffs as a major concern. Service providers cut jobs for the second straight month to curb costs, leading to a rise in work backlogs, pushing the corresponding gauge into expansionary territory for the first time this year. Firms also reduced prices to attract customers despite higher input costs. Lynn Song, chief economist at ING in Hong Kong, said that unlike government support policies for specific products such as appliances through a trade-in policy, there has been "limited support to boost services consumption so far". To bolster domestic demand, consumption vouchers could be a short term boost, while improving the quality, availability, and range of services over the long term remained key, she said. "For consumption as a whole, it is important to restore consumer confidence to unlock savings, starting with restoring a positive wealth effect and exiting the contractionary mindset to resume reasonable wage growth." - Reuters
Business Times
06-05-2025
- Business
- Business Times
Chinese holiday spending inches up but trade war weighs on services
[BEIJING] Chinese travellers' spending rose 8 per cent year-on-year during the May Day holiday to 180.27 billion yuan (S$32.2 billion), but was still off pre-pandemic levels, while the country's services activity expanded at the slowest pace in seven months in April. The May Day holiday, one of the country's longest, is closely watched as a barometer of Chinese consumer confidence. Consumption in the world's second-largest economy has suffered amid a sputtering economy and prolonged property crisis, while the fallout from the US-China trade war is set to deepen the pain. China's tourism ministry recorded 314 million domestic trips during the holiday, an increase of 6.5 per cent, while the number of transactions using Weixin Pay, a popular payments app, rose by more than 10 per cent year on year, with a notable increase in restaurant spending. But total spending per head over the five-day May holiday period, a typically busy time for family travel, rose just 1.5 per cent to 574.1 yuan, Reuters calculations based on official data showed. It remains below 2019 levels when per capita spending was 603.4 yuan. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Cinemas suffered a significant drop in ticket sales, with the box office haul over the five-day holiday at 747 million yuan, only about half of the same period in 2024. Growth slackening Meanwhile, China's services sector saw new order growth slacken from March, weighed by uncertainty caused by US tariffs, a private sector survey showed on Tuesday. Despite stronger-than-expected economic growth in the first quarter, supported by government stimulus, China's economy continues to face persistent deflationary risks. The Caixin/S&P Global services purchasing managers' index (PMI), fell to 50.7 from 51.9 in March, its lowest reading since September. The 50-mark separates expansion from contraction. This was broadly in line with China's official survey, which showed services activity easing to 50.1 from 50.3 in the previous month. The Caixin PMI is considered a better read of trends among more export-oriented and smaller firms. The Caixin services survey showed new business growth slowed to its weakest since December 2022, though export orders edged up slightly, partly due to a tourism recovery. The drop in the Caixin PMI provides 'further evidence that the trade war is weighing on economic activity in China, even beyond the manufacturing sector,' said Zichun Huang, China economist at Capital Economics. 'While some caution is clearly warranted, we suspect that firms are overestimating how much damage US tariffs will do,' she said. About 48 per cent of employees in China worked in the services industry in 2023 and the sector contributed 56.7 per cent to total GDP last year. But US President Donald Trump's trade actions may hit the manufacturing sector hard and hurt business hiring plans and consumer confidence. Business sentiment in the services sector grew at the slowest pace since February 2020, with companies citing US tariffs as a major concern. Service providers cut jobs for the second straight month to curb costs, leading to a rise in work backlogs, pushing the corresponding gauge into expansionary territory for the first time this year. Firms also reduced prices to attract customers despite higher input costs. REUTERS
