China’s Caixin PMI Services dropped to 50.6 in June from 51.1, missing expectations of 51.0. However, the broader PMI Composite rose from 49.6 to 51.3, marking a return to growth territory driven largely by stronger manufacturing activity. Caixin’s Wang Zhe noted that while supply and demand both improved, the rebound remains uneven and fragile.
Still, the data suggest mounting challenges. Employment continued to contract, and firms were forced to cut selling prices at the fastest rate in over a year, squeezing profitability despite stable input costs. Optimism weakened amid ongoing uncertainty, with business sentiment falling below its long-term average.
