China’s services activity growth falls to 14-month low in June, weighed down by resurgence of coronavirus cases

Name: What is the purchasing managers' index (PMI)?
Uploaded: 2021-07-05T02:29:39.000Z
Duration: 1 min 7 s
Description: What is the purchasing managers' index (PMI)?

Caixin/Markit services purchasing managers’ index (PMI) fell to 50.3 in June, the lowest since April 2020 and down significantly from 55.1 in May

China’s official services gauge had also shown a marked slowdown in June, though it remained well in expansion territory

Reading Time:2 minutes

Why you can trust SCMP

Caixin/Markit services purchasing managers’ index (PMI) fell to 50.3 in June, the lowest since April 2020 and down significantly from 55.1 in May. Photo: AFP

Reuters

Published: 10:29am, 5 Jul 2021Updated: 10:57pm, 5 Jul 2021

Growth in China’s services sector slowed sharply in June to a 14-month low, weighed down by a resurgence of coronavirus cases in southern China, a private survey showed on Monday, adding to concerns the world’s second-largest economy may be starting to lose some momentum.

The Caixin/Markit services purchasing managers’ index (PMI) fell to 50.3 in June, the lowest since April 2020 and down significantly from 55.1 in May. It held just above the 50-mark, which separates growth from contraction on a monthly basis.

China’s official services gauge had also shown a marked slowdown in June, though it remained well in expansion territory. The private survey is believed to focus more on smaller companies.

Coupled with a slowdown in the manufacturing sector, analysts say the PMI survey findings suggest that pent-up coronavirus demand may have peaked and China’s robust economic rebound from the crisis is starting to moderate.

01:07

What is the purchasing managers' index (PMI)?

Though slower to recover from the pandemic than manufacturing, a gradual improvement in consumption in recent months had boosted China’s services sector.