China’s Purchasing Managers’ Index (PMI) for the service sector rose to 54.5 in June, the fastest growth in nearly a year and the first increase after a three-month contraction.
A PMI above 50 indicates that China’s service sector continues to expand.
The Caixin report was in line with Thursday’s National Bureau of Statistics (NBS) report that China’s services PMI rose to 54.7 in June from 47.8 in May.
The Chinese services sector benefited from the announcement by the Shanghai municipal government that it would lift the lockdown measures on June 1.
Previously, Shanghai, home to 25 million people, had been locked down for two months, severely affecting the overall picture of China’s economy.