China's Service Sector Expansion Accelerates in February

In a positive sign for the Chinese economy, the service sector in China expanded at a slightly faster pace in February compared to January. The Caixin China General Services Business Activity Index reached 51.4, up from 51 in the previous month, as reported by S&P Global on Wednesday.

This figure exceeded investors' expectations, with the composite PMI also showing an increase to 51.5 in February from 51.1 in January. Dr. Wang Zhe, Senior Economist at Caixin Insight Group, highlighted the growth in both supply and demand, noting the continuous introduction of new products and promotional efforts by service providers. The indices for business activity and total new orders have remained above 50 for 26 consecutive months, with both showing slight increases from January. Additionally, external demand saw improvement, with the gauge for new export orders reaching a three-month high while staying in expansionary territory.