May’s stronger-than-expected services activity in China signals improving domestic demand amid economic recovery efforts.
China’s Services Purchasing Managers’ Index climbed to 54.4 in May from April’s 52.6, exceeding market expectations of 52.3. The rise indicates accelerating expansion in the sector, a key driver of the world’s second-largest economy.
The April print stood at 52.6, while consensus forecasts had anticipated a modest increase to 52.3. The May figure marks the highest reading since early 2023, reflecting renewed momentum in services activity.
AUD/USD showed limited reaction, dipping 0.03% to 0.7178 as traders weighed the data against broader risk sentiment and commodity price trends.