China's services sector is growing at the fastest pace in 14 months

According to a private survey, activity in China's services sector reached its highest level in 14 months in March, thanks to a strong expansion of new work.

The activity index of Caixin's Chinese services business increased from 51.1 in February to 54.4 in March. This is the fastest increase since January 2018. Figures above 50 indicate expansion.

Service companies reported "strong growth and acceleration" of new jobs, which were the strongest in 14 months, and new export sales rose to the second highest rate since December 2017, according to Caixin and IHS Markit, who conducted the investigation.

Business confidence in the services sector has risen optimistically to its highest level in three months.

The improved outlook for the services sector came after the Caixin Purchasing Managers' Index in the manufacturing sector showed that the sector resumed growth in March.

Zhengsheng Zhong, director of macroeconomic badysis for the CEMB group, said China's economic fundamentals had improved in March, but that sentiment remained cautious. He added that it needed more evidence "to determine whether the Chinese economy has stabilized."

Caixin China's composite PMI, covering both the manufacturing and services sectors, reached 52.9 vs. 50.7 a month earlier, its highest level since June 2018.