China’s Caixin services PMI strengthens in July

A private gauge of China’s services activity edged up in July, pointing to continued recovery in the nation’s services sector.

The Caixin services purchasing managers index climbed to 54.1 in July from June’s five-month low of 53.9, Caixin Media Co. and S&P Global said Thursday.

The index remained above the 50 mark that separates expansion from contraction for the seventh month in a row.

The gauges for business activity and new business have both stayed above 50 for the seventh consecutive month, but growth in external demand has slowed significantly, with the reading for new export business slightly higher than 50, according to Caixin.

The economic outlook overseas was unclear, said surveyed companies.

Employment in the services sector continued to expand, with the subindex remaining above 50 for the sixth consecutive month amid buoyant market supply and demand, said Caixin.

“Service providers remained optimistic, expressing confidence in the market outlook for the coming year, although they were also concerned about the sustainability of global economic growth,” said Wang Zhe, senior economist at Caixin Insight Group.

The reading in July for future activity expectations was more than 3.0 points lower than the historical average, Wang added.

China’s official nonmanufacturing PMI, which covers both service and construction activity, fell to 51.5 in July from 53.2 in June, official data showed Monday. The subindex tracking service activity declined to 51.5 in July from 52.8 in June.

Original Source Link