Caixin services PMI rises in August

The growth of China’s service sector accelerated in August as the Caixin General Services Purchasing Managers’ Index (PMI) rose to 52.1 from 51.7 in July. However, the Caixin Composite Output Index, which reflects the health of both manufacturing and service sectors, fell to 51.8 from July’s 22-month high of 51.9. The number was dragged down by the manufacturing sector, which stalled last month. Despite the slight fall, the composite index means China’s overall business activity remained relatively strong in August because the reading remains above the neutral 50-point level which separates growth from contraction, but the rate of expansion was slightly less than seen in July, when the index was higher. The previously released Caixin China PMI for the manufacturing sector was 50, down from July’s 50.6.