China’s July official services PMI dips to six-month low
PMI figures dip to six-month low as new orders slow last month
Growth in the mainland's services sector slipped to a six-month low in July as new orders rose at their weakest rate in at least a year, data showed, taking some of the shine off an industry that has been a bright spot in the economy this year.
The official purchasing managers' index (PMI) for the non-manufacturing sector slowed to 54.2 in July from June's 55, the National Bureau of Statistics said yesterday. That is the weakest reading since January.
A reading above 50 in PMI surveys indicates an expansion in activity while one below the threshold points to a contraction.
The slight retreat in the services sector came at a time when mainland factories have started to recover, having earlier this year been one of the drags on growth in the world's second largest economy due to faltering demand at home and abroad.
In contrast, services firms have held up through each slowdown since PMI records began in January 2007, with the index staying above 50 in every month.
A mixed performance from other measures in yesterday's PMI suggested that the services sector enjoyed an encouraging, albeit slightly muddy, outlook.
Growth in new orders fell to their slackest rate in at least a year in July. Yet at the same time, companies' business expectations jumped to a level not seen in at least a year. Inflation within the sector, be it production or final sales prices, also quickened to a rate unseen in at least 12 months.