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China’s services activity expands at slowest pace in 8 months in August amid sluggish demand
- Caixin/S&P Global services purchasing managers’ index (PMI) fell to 51.8 in August, down from 54.1 in July
- Last week, the official non-manufacturing gauge also fell slightly to 51
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China’s services activity expanded at the slowest pace in eight months in August, a private-sector survey showed on Tuesday, as weak demand continued to dog the world’s second-largest economy and stimulus failed to meaningfully revive consumption.
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The Caixin/S&P Global services purchasing managers’ index (PMI) dropped to 51.8 in August from 54.1 in July, the lowest reading since December when the coronavirus confined many consumers to their homes. The 50-point mark separates expansion from contraction in activity.
The data broadly aligned with the official services PMI released last week, which showed the sector continued to trend downwards. Even the record number of railway trips and stellar box office earnings during the summer failed to drive up the reading.
Although both the official and the Caixin manufacturing PMIs beat market expectations and showed an increase from July to August, softening services activity still weighs on the economy amid sluggish demand and a property downturn.
Caixin/S&P’s composite PMI, which includes both manufacturing and services activity, edged down to 51.7 from 51.9 in July, marking the eighth straight month of expansion, albeit the weakest since January.
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