China's Caixin services PMI drops to 52.8 in July, a big miss
China's Caixin services PMI for July came in at 52.8 vs 53.7 expected and 53.9 last, which showed that Chinese business activity slowed down at a faster pace than expected.
Meanwhile, the Composite Output Index also fell to 52.3 in July from June’s reading of 53.0, signaling a broad based slowdown in the overall growth momentum.
Quotes from Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group:
“The Caixin China General Services Business Activity Index dropped to 52.8 in July from June. The sub-index of new business remained in expansionary territory, but fell significantly to its lowest level since December 2015 — a clear sign that demand for services had worsened. This change led to slower increases in employment and prices charged. The sub-index of input costs expanded at a slower pace. The subindex of business expectations, a gauge of companies’ confidence for the next 12 months, remained above 50, but slumped to its lowest level since October 2015, indicating that their confidence had been shaken.”
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
