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.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.