The Caixin China Composite PMI data (which covers both manufacturing and services) pointed to a weaker increase in total Chinese output at the end of the first quarter. At 52.1 in March, the Composite Output Index fell from 52.6 in February to signal the slowest increase in Chinese business activity for six months.

Similar trends were seen at the sector level, with both manufacturers and service providers noting slower expansions in output. Furthermore, the rate of services activity growth weakened to a six-month low in March. This was highlighted by the seasonally adjusted Caixin China General Services Business Activity Index posting at 52.2, down from 52.6 in February, which was consistent with only a modest rate of increase. Chinese manufacturing production also rose modestly in March.

March data pointed to weaker growth in composite new orders, with the rate of expansion edging down to a four-month low. This reflected weaker increases in new work across both monitored sectors. As was the case with activity, service providers registered the slowest increase in new business since last September. A number of services companies mentioned that new product developments and greater client numbers had lifted sales. At the same time, goods producers signalled a softer, albeit still solid, rise in new orders