China services activity slows as firms fret about costs - Caixin survey

4th Sep 2024 07:25

(Sharecast News) - China services sector activity showed slower growth last month as firms cut staffing in response to concerns about higher costs, according to a private survey published on Wednesday.

The Caixin/S&P Global services purchasing managers' index (PMI) fell to 51.6 in August from 52.1 in July. A mark above 50 represents expansion.

"Competition in the sector was still fierce, and boosting sales through price cuts became a priority for businesses," said Wang Zhe, senior economist at Caixin Insight Group.

"Surveyed companies adopted a cautious approach to hiring to save costs, leaving the labour market under pressure."

Reporting by Frank Prenesti for Sharecast.com