China's services sector expands at slower pace in July - Caixin PMI

BEIJING Growth in China's service sector slowed in July from a decade-long high the previous month, as the new export business fell and job losses continued, an industry survey on Wednesday showed, points to cracks in the sector's post-COVID recovery.

The Caixin / Markit Services Purchasing Managers Index (PMI) fell to 54.1 from June 58.4, which was the highest reading since April 2010. The 50 mark separates growth from contraction monthly.

The service sector, which accounts for about 60% of the economy and half of urban jobs, initially recovered more slowly than large manufacturers, but the recovery has accelerated in recent months as restrictions COVID-19 nationwide in public meetings gradually lifted

However, the pressures remain. Large job losses, wage cuts, and now new COVID-19 outbreaks in the west and northeast regions of the country have made some consumers cautious about spending and going out again. [nL3N2F1342]

Caixin's survey showed that new export business received by Chinese service companies contracted again in July after a brief expansion, weighing on overall new business growth, which was primarily driven by domestic markets. .

Businesses continued to lose jobs for the sixth consecutive month, albeit at a slower pace, as they sought to boost profits at a time of rising costs and falling prices.