On Wednesday, the national statistic institution of China published the service data. Those were incrasing by 51.4% to become 56.3 in March. That number was so far away from the experts expectation which predicted that the increase will be 52.0 only.
A graphic shown that the China PMI data jumped to its highest record since November 2020. Before, it was declined drastically in January and February. That condition was triggered by the increase of the coronavirus cases in Hubei Province, China.
The case had made people afraid to leave the house and do their activities. However, after that COVID-19 concern in Hubei subsided, the public starts to do their activities normally. The back to normal economy situations bring the positive value.
The China PMI Manufacture Data
The better condition of economic in China creates the positive increase in the service sectors. The examples are like cafe, restaurants, educations, until healths. Besides that, the recovery is also shown by the PMI manufacture data released in that country.
The data increased. That was from 50.6 to become 51.9 in March. Meanwhile, the China PMI composite is also raising from 51.6 to 55.3 at the same period. However, there is a possibility that the recovery to be corrected. The analysts still doubting a thing.
It is about the continuous growth in the future. The increasing PMI composite indicates that the speed of China economy expansion is on their recovery track quickly. The analysts doubt that the recovery will stay or stable for a long time.
It means that they thought the rebound will be temporary. They also said thay when the service trend sector is recovered quickly, so a space to chase the lag will be decreased. The export level may be weakened or back to normal in the next quartersm
The Effect of a Wide Vaccination Program
The massive vaccination programs done is one of the causes of that situation. So many countries did a great job so that the global consumption will be back just like before the pandemic. Meanwhile, Japan also shows a good data.
The retail sales data there was released by the Japan statistic institution on Tuesday. It shows that the level reaches -1.5 percent for year-over-year in February. That number is better than the further decline expectation from -2.4% to become -2.8%.
The trend of retail sales in that country is worse than several months before. It is in the negative zone for three months in-a-row. That was caused by the Japanese consumers' cautious attitude in spending their money because the economy recovery is still not sure.
It is related to the pandemic effect. The decline of that retail sales data along February is mostly caused by the weak output for the goods like clothes, bathing equipment, and other common retail sales. That situation may changes in the future.
The Economy Recovery Delay May Happen
The coronavirus pandemic is not ended yet. That becomes the main reason for concerning about the economy recovery delay. The clothes are not sold because people only stay at home and not really back to the commercial facilities soon. That makes sense.
The trend is that they are bought any goods from the supermarket near them or in a close area. It refers to the fundamental data release which is not good lately. The Japanese economic is predicted will be sharply contracted in the first quarter this year.
The experts predicted a surprising thing due to that condition. They said that the Japanese GDP will fall up to 6.0 percent. It is going to be happened amidst the weakened export and consumers purchase sector. Yen is still under pressured at the moment.
