China services activity grows more than expected in July- Caixin PMI
2024.08.04 22:23
Investing.com– China’s services sector grew slightly more than expected in July, private purchasing managers index data showed on Monday, indicating that some facets of the economy remained strong despite a slowdown in manufacturing.
The grew to 52.1 in July from 51.2 in June, beating expectations of 51.4. A reading above 50 indicates expansion, with the reading now growing for a 19th consecutive month.
Strength in the services sector was driven chiefly by steady onshore and offshore demand, while a resurgence in tourism also aided the sector.
But Monday’s reading also showed an indicator of external demand reaching its weakest level in 11 months, indicating that overall demand remained weak.
Still, the services PMI was largely in contrast to and PMIs on manufacturing released last week, which showed a contraction in the sector.
Demand for services has helped keep some parts of China’s economy resilient, although this support has also remained limited amid persistent headwinds from the manufacturing sector.
Beijing has rolled out a series of looser monetary policies to help support demand and push up inflation. But the measures have so far had only a limited impact, leaving investors clamoring for more support.
The services sector has also provided only so much strength, given that manufacturing and industrial production are the key economic engines of China. The economy grew less than expected in the second quarter, data had shown in July.
