Chinese PMI hits highest level in a decade in latest sign that the world's 2nd largest economy is surging back

• China's Caixin Services PMI hit its highest level in a decade in June as economic activity continues to pick up in the first country hit by coronavirus.
• The services PMI came in at 58.4, up from 55 in May.
• On Wednesday, the Caixin China manufacturing purchasing managers index rose to 51.2 compared to 50.7 in May.
• The services sector accounts for almost 50% of China's GDP, so it is the latest sign the country's economy is recovering from its coronavirus slowdown.

China's services PMI — a closely watched economic survey — hit a 10-year high on Friday in the latest sign that the country's economic recovery as it comes out of the worst of its coronavirus crisis is accelerating.

China's Caixin Services Purchasing Managers Index hit 58.4 for in June. The previous reading for May was 55.

Read More: The most accurate tech analyst on Wall Street says these 6 stocks have potential for huge gains as they transform the sector

50 is the separation point for expansion and contraction, so it is the latest sign that economic activity is picking up in China.

PMI survey data is widely used to track trends in economic activity across the world's biggest economies.

June's result was the highest since April 2010 when China's Caixin Services PMI hit 58.4.

The services sector in China accounts for almost 50% of the country's GDP, so if it expands, the Chinese economy generally does too.

It is the latest sign that the world's second largest economy, which was first hit by coronavirus through an outbreak in the city of Wuhan, is experiencing an uptick in economic activity.

Read More: A 22-year market vet explains why stocks are headed for a 'massive reset' as the economy struggles to recover from COVID-19 — and outlines why that will put mega-cap tech companies in serious danger

The number of total new businesses also increased at its fastest pace since August 2010.

On Wednesday, positive news also came in from the manufacturing industry with China's manufacturing activity rising to a six-month high in June.

The Caixin China manufacturing purchasing managers index rose to 51.2 from 50.7 in May.