China’s services PMI
According to a report by Markit Economics, China’s Caixin services PMI rose to 52.7 in August 2017 as compared to 51.5 in July. The PMI figure beat the preliminary market estimate of 51.8. This month’s level was the highest improvement since May 2017.
The strong performance of China’s services PMI was mainly due to the following factors:
- Production volume and output rose in August 2017.
- New business orders rose in August 2017.
- Job creation also improved.
Performance of various ETFs in August
The iShares MSCI China ETF (MCHI), which tracks the performance of China (YINN) (ASHR), rose nearly 4.3% in August 2017. Major ETFs that track the performance of China showed improved figures in August 2017.
We already discussed in the above part that China’s manufacturing activity picked up in August 2017. The economy is undergoing a huge transformation. From a manufacturing hub, it is changing to a consumption-driven economy. The service sector will have a huge role in this transformation. China’s consumers seem to be more particular about the quality of services they are using.
In the next part of this series, we’ll analyze the final manufacturing PMI for Brazil in August 2017.