The July reading of the MasterCard Caixin BBD China New Economy Index (NEI) fell to 29.4, equivalent to the lowest level hit in January, signaling that economic contribution from nascent hi-tech industries shrank slightly amid wage cuts and lower capital investments. This month’s reading declined 140 basis points compared to June. The index measures the labor, capital and technology inputs that go into up-and-coming industries such as IT services, green energy, bio technology, finance and legal services. The decline in the NEI in July was mainly due to a drop in spending on luring talent and lower capital infusion. The number of new jobs created fell to 11.5 million in the industries that belonged to the new economy, down from 15.3 million in June.