Economic Buzz: China Services Sector Continues Expansion In July

3 Aug 2022 , 11:30 AM

The services sector in China continued to expand in July, and at a faster pace, the latest survey from Caixin revealed with a services PMI score of 55.5. Thats up from 54.5 in June, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. July survey data signaled a further recovery in Chinese services activity amid looser pandemic restrictions and the return to more normal business conditions. Notably, the rate of output expansion quickened to a 15-month high as new order intakes also rose at a faster pace. However, the pandemic continued to dampen foreign demand, which fell modestly in July. The survey also showed that the composite PMI fell to 54.0 in July from 55.3 in June. Total new order growth meanwhile accelerated slightly on the month but remained modest overall. While service providers saw a solid upturn in sales, manufacturers noted only a marginal rise in new order intakes. Quicker falls in employment across both manufacturing and service sectors led to the fastest reduction in composite employment for 17 months.Powered by Commodity Insights