China Caixin Services PMI for July 52.1 (prior 51.2)

China Caixin Services PMI rises to 52.1 in July, beats expectations of 51.4

• Services PMI increases to 52.1 from 51.2 in June
• New business growth accelerates to solid pace
• Employment growth fastest in nearly a year
• Prices charged unchanged despite rising input costs
• Composite PMI dips to 51.2 from 52.8, 9-month low
• Manufacturing sector facing greater pressure than services

The Caixin China Services PMI rebounded in July, coming in at 52.1 versus 51.2 in June. This extends the expansion streak to 19 straight months, though the pace remains below the year-to-date average.

New business growth picked up, supported by improved demand and expanded service offerings. Export growth continued but slowed to an 11-month low. Employment rose at the fastest rate in nearly a year.

Despite higher input costs, firms kept selling prices unchanged to stay competitive amid cautious optimism. The Composite PMI fell to a 9-month low of 51.2, dragged down by weakness in manufacturing.

Caixin economist Wang Zhe noted that while services improved, manufacturing faced greater pressure. He highlighted that “insufficient effective domestic demand and weak market optimism” remain key challenges for the economy.

Earlier:

• China Caixin Manufacturing PMI for July 2024 49.8 (expected 51.5, prior 51.8)

• China July 2024 Official Manufacturing PMI 49.4 (expected 49.4)

This article was written by Eamonn Sheridan at www.forexlive.com.