The Caixin China General Services Business Activity Index fell to 51.5 last month, from 52.8 in July – a 10-month low. The reading remains in expansionary territory, but August was the second consecutive month of decline.
“Economic growth remains on a downward trajectory,” said Zhong Zhengsheng, a director at consultancy CEBM Group and contributor to the study. “[The data] indicate that the effects of expansionary credit policy and active fiscal policy are yet to kick in. Signs of stagnation emerged as upward pressure on prices remained, even though demand weakened at a faster rate.”
Whilst several sub-indices, such as new business and business expectation, showed slight improvements, this was largely coming from particularly low bases set in July.