China service sector growth eases to eight-month low - Caixin

3rd Jul 2024 07:43

(Sharecast News) - Growth in China's services sector eased to an eight-month low in June, according to data released on Wednesday.

The Caixin services purchasing managers' index fell to 51.2 from 54.0 in May, missing expectations for a reading of 53.4 . However, it remained above the 50.0 mark that separates contraction from expansion.

Zichun Huang, China economist at Capital Economics, said: "The sharp fall in the Caixin services PMI is another sign that China's economy lost some momentum last month. Its official counterpart also declined, with the average of the two dropping to its lowest level since August.

"But the manufacturing sector continued to make steady gains, and we still expect economic activity to hold up relatively well in the coming months, supported by fiscal stimulus and strong exports."