China’s July private services sector records acceleration
China’s service sector accelerated in July despite economic threats from the newest wave of COVID-19 outbreaks in the country.
The Caixin services purchasing managers’ index (PMI) climbed 54.9 in July from June’s 50.3. It was at the highest peak since May 2021. A figure higher than the 50 mark suggests economic growth.
The acceleration in July figures was attributed to the successful control of COVID-19 infections in Southern China. However, Caixin Insight Group senior economist Wang Zhe noted that the latest surge in COVID-19 cases could negatively affect PMI readings this month.
The service sector has lagged behind the manufacturing sector in recovering from the pandemic, but a boost in consumer spending was seen to close the gap.
Last Monday’s data showed Caixin manufacturing PMI hit a lower-than-expected 50.3 in July.
The non-manufacturing PMI and the manufacturing PMI were both lower than expected at 53.3 and 50.4, respectively.