Chinese Services Sector Growth Hits 4-Month Maximum

Forex News

June data showed that China services sector rose in the fastest pace in four years. This was attributed to improvements in new businesses and employment. Caixin/Markit services PMI increased from 52.9 to 53.9 in June. The employment sub-index in Caixin PMI surged to its 10-year maximum of 51.7. Caixin's composite PMI, that suggests manufacturing and services sectors, grew in a fastest pace in four months of 53.0.

Input costs growth hit the 4-month maximum on higher prices for raw materials, transportation and staff. According to director of macroeconomic analysis at CEBM Group Zhengsheng Zhong: "Input costs rose more than prices charged, putting pressure on service providers' confidence".

But, China’s economic outlook is ruined with the threat of US-China trade war. The economy is projected to slow from 6.9% to 6.5% this year.