A private gauge of China’s services activities retreated in June, in line with an official index that also pointed to a slower recovery in the sector.
The Caixin services purchasing managers index dropped to 53.9 in June from 57.1 in May, Caixin Media Co. and S&P Global said Wednesday. Despite the fall, the index remained above the 50 mark separating expansion from contraction for a sixth month in a row.
Both service supply and demand expanded in June, but at a slower pace, as the market experienced a weaker-than-expected recovery, said Caixin. External demand remained relatively stable as the lifting of travel restrictions boosted service exports.
Service providers increased hiring to boost production capacity despite a slower expansion in activity, according to Caixin. Businesses in the sector also remained upbeat about the outlook for next year, with a subindex measuring their expectations climbing higher into expansion territory.
China’s official nonmanufacturing PMI, which covers both service and construction activity, also dropped in June, falling to 53.2 from 54.5 in May. The subindex tracking service activity declined to 52.8 from 53.8 over the period.
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