Caixin / Markit Services and Composite PMIs for July
Key points from Markit's summary of the release:
- Stronger manufacturing output growth contrasts with further slowdown in services activity
- Composite new business expands at quickest pace for four months
- Total employment continues to decline, led by job cuts at manufacturers
Comment from Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group:
- "The Caixin China General Services Business Activity Index fell 0.1 point from the previous month to 51.5 in July, on par with April's reading that marked the weakest pace of expansion since May 2016.
- he index of new business edged down and the input costs index fell to its lowest level for nearly a year, while prices charged rose marginally. T
- The Composite Output Index came in at 51.9, up 0.8 points from a month ago and the highest figure since March.
- China's economic performance in July was stronger than expected, mainly due to sustained recovery in the manufacturing sector. However, downward pressure on the economy likely remains as the index gauging companies' confidence towards the 12-month business outlook dropped in both the manufacturing and services industries."
