China’s services sector expansion seen at slower pace in July
July had seen China’s services sector growing at a relatively slower speed. The sector expanded slower than its decade-high record in June due to struggling new export businesses and surging unemployment, an industry poll showed on Wednesday
The Caixin/ Markit services Purchasing Managers’ Index (PMI) was monitored at 54.1 last month. This placed lower than the 58.4 reading in June, the most upbeat reading since April 2010.
The services sector, which covers almost 60% of the economy and half of the urban jobs, initially recovered slower than large manufacturers. However, the rebound has gained momentum in recent months after virus-driven restrictions on public gatherings were lifted.
Despite this, pressures haven’t eased as surging unemployment, salary reductions, and new coronavirus infections in China’s west and northeast regions dampened consumers’ sentiment.