China Caixin PMI Services dropped to 50.3 in June, down from 55.1, well below expectation of 55.7. There were the softest increase in activity and new work for 14-months. Staff numbers fell as capacity pressured eased. Rates of input cost and output charge inflation slowed notably. PMI Composite dropped to 50.6, down from 53.8, worst in 14-month.
Wang Zhe, Senior Economist at Caixin Insight Group said: “Overall, activity in both the manufacturing and services sector continued to expand. However, impacted by the resurgence of the virus in some regions in China, the services sector was weaker than the manufacturing sector, both in terms of market supply and demand or employment.”
