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China’s services activity growth hits 8-month low as new orders slow, Caixin PMI shows
- Caixin/S&P Global services purchasing managers’ index (PMI) fell to 51.2 in June from 54 in May, marking the lowest reading since October 2023
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China’s services activity expanded at the slowest pace in eight months and confidence hit a four-year low in June, dragged by slower growth in new orders, a private-sector survey showed on Wednesday, suggesting more economic stimulus is needed.
The Caixin/S&P Global services purchasing managers’ index (PMI) eased to 51.2 from 54 in May, marking the lowest reading since October 2023 but remaining in expansionary territory for the 18th straight month. The 50-mark separates expansion from contraction.
The survey, which covers mostly private and export-oriented companies, aligned with a broader official PMI released on Sunday that showed activity in the services sector dropped to a five-month low.
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The world’s second-largest economy has reported patchy growth in recent months, reinforcing calls for more policy support to achieve an ambitious growth target of around 5 per cent.
The new orders subindex fell to 52.1 in June from 55.4 the previous month. Overseas demand also eased slightly even on top of strong exports in May.
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Business confidence levels eased to the lowest level since March 2020 with concerns about the global economy and rising competition.
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