Economic activity in the Chinese service sector fell

Leading economic indicators in China point to weakening demand putting pressure on the economy’s recovery momentum after the lifting of Covid-19 measures.

China’s general services purchasing managers’ index (PMI) from economic and financial news service Caixin fell 3 points to 53.9 in June compared with the previous month.

Despite this drop, it should be noted that the index remained above the 50-point threshold that separates the expansion and contraction of economic activity for the sixth consecutive month.

In the index, values ​​above 50 indicate an increase in economic activity, while values ​​below indicate a decrease.

The index, prepared from the results of the surveys sent to the purchasing managers of more than 400 companies that operate in the service sector in China, is emerging as a barometer of the economic activities of the sector.

THE MANUFACTURING INDUSTRY HAS NOT BREAKED THE CONTRACTION THRESHOLD

Meanwhile, although the manufacturing PMI, announced by China’s National Bureau of Statistics (UIB) last week, rose 0.2 points to 49 in June compared with the previous month, it failed to break the contraction threshold. . Thus, the leading data on economic activity in the country’s manufacturing sectors has been below the growth threshold for 3 months.

With the world’s second largest economy growing above expectations in the first quarter, China lost pace in the second quarter.

China will publish its second quarter growth data in the middle of this month. (AA)