Purchasing managers index (PMI), one of the most important indicators of service activities in China, pointed to a slower recovery in the sector.
Caixin services sector PMI fell to 53.9 points from 57.1 points in June. Despite this decline, the index remained above the 50-point threshold that separates expansion and contraction for the sixth month in a row.
Caixin’s statement pointed to a slower-than-expected recovery in the industry.
Service providers increased hiring to increase production capacity despite slow expansion in business. The index, which measures the expectations from the sub-indices, pointed out that the enterprises in the sector maintain their optimism about the outlook for the next year.
China’s official non-manufacturing PMI, which covers both services and construction activities, also fell to 52.3 from 55.6 in June.