China: Services activity growth slows in July, manufacturing rebounds

China's Caixin PMIs services came at 51.7 vs 52.7 last, with the composite at 51.9 vs 50.3 last.

Summary – Services and Composite PMI data

Caixin China Composite PMI™ data (which covers both manufacturing and services) signalled a stronger expansion in Chinese business activity at the start of the third quarter. Furthermore, the Composite Output Index rose from 50.3 in June to 51.9 in July, to signal the fastest rate of growth since September 2014

Commenting on the China General Services PMI™ data, Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group said: “All of the index categories showed signs of deterioration, with employment falling back into the territory of contraction after three consecutive months of growth."

Dr. Zhong adds: "The improvement underlined by the composite index was mainly caused by a marked expansion in the manufacturing sector, despite service activity growing at a slower pace. Implementation of supportive measures including proactive fiscal policies must continue to protect the recovery, and regulations in the services sector should be further relaxed.”