(Yicai Global) May 7 --China’s services sector activityextended gains into a 12th straight month in April, as robust new business growth powered the expansion to its fastest pace so far this year,according to a widely watched independent survey.

The Caixin services purchasing managers’ index jumped 2 points to 56.3 last month from March, data released by financial media group Caixin showed today. A level above 50 indicates expansion.

Sales expanded due to China’s successful control of the coronavirus at home and a resumption of overseas business growth. Overseas demand increased for the first time in three months, with the sub-index for export orders jumping above the 50-point mark.

The Caixin manufacturing PMI rose 1.3 points to 51.9 last month, its highest level this year, the survey found, while the Caixin composite PMI rose 1.6 points to 54.7, showing a big and rapid expansion of manufacturing activity.

But the readings did not tally with the figures published by the National Bureau of Statistics last week, which showed declines in each of the three official gauges in April.

The Caixin survey’s employment sub-index gained for an eighth straight month. The cost of labor and raw materials continue to rise. Input costs increased for a 10th month in a row, and prices set by service providers rose along with costs.

Service sector entrepreneurs expressed great confidence in the economic recovery and China’s ability to control the contagion. Although the gauge for business expectations fell slightly from the previous month, it was still significantly higher than the long-term average.

Input costs and output prices in manufacturing and services have continued to rise for several months. Over the coming months, higher raw material costs and imported inflation are expected to limit policy choices and become a major obstacle to a sustained economic recovery, said Wang Zhe, senior economist at Caixin Insight Group.

Editor: Tom Litting