China's Service Sector Gains Momentum: PMI Edges Up in February

Caixin China General Services PMI for February 2025 was recorded at 51.4, a slight increase from the previous month's reading of 51.018. This reflects a modest growth in China's service sector, with a more rapid recovery in demand, including export orders. Growth in new business and export orders helped push up the first rise in employment in three months as service firms met increased workloads1. Despite continued trade tensions, business confidence hit a three-month high as firms anticipated better demand and made further sales-supporting measures1.

Some of the highlights of the February Caixin Services PMI are as follows:

PMI Reading: 51.4, up from 51.0 in January.

Drivers of Expansion: New orders and export orders.

Employment: First rise in three months because of increased work volumes.

Input Costs: Fell for the first time since June 2020, resulting in lower selling prices.

Business Outlook: Optimism hit a three-month high as expectations of more robust demand fueled it.