China’s services sector PMI hits three month high

China’s services sector expanded at its fastest pace in three months in June, according to an official survey by the National Bureau of Statistics and the China Federation of Logistics and Purchasing (CFLP). The survey showed the purchasing managers’ index for the country’s non-manufacturing sector rose to 56.7 from 55.2 in May, the best reading since a 10-month high of 58.0 recorded in March. A reading above 50 indicates expanding activity and one below 50 signals contraction, according to the survey methodology.


China’s services sector PMI hits three month high


China’s services sector expanded at its fastest pace in three months in June, according to an official survey by the National Bureau of Statistics and the China Federation of Logistics and
Purchasing (CFLP). The survey showed the purchasing managers’ index for the country’s non-manufacturing sector rose to 56.7 from 55.2 in May, the best reading since a 10-month high of 58.0 recorded in March.A reading above 50 indicates expanding activity and one below 50 signals contraction, according to the survey methodology.

The reading from the services sector follows two PMI surveys of China’s vast manufacturing industry showing factory activity fell to a seven-month low in June, dampened by both external and  domestic weakness. China’s fast-growing services industry, which accounts for about 43 per cent of output in the world’s second
largest economy, has so far weathered the global slowdown much better than the factory sector.

“The index shows stable and steady growth momentum of China’s services sector. Taking the official PMI indexes under consideration, they all indicate that China’s current economic growth shows signs of stabilising,” Cai Jin, a vice president at the CFLP, said in a statement accompanying the index.

China’s official manufacturing PMI for June confounded market expectations of slippage into cautionary territory and clung to an expansionary reading of 50.2 when it was published on July 1 – albeit at a seven month low.