Activity in China’s services sector expanded in June at its slowest pace in four months according to the Caixin China General Services Business Activity Index, dropping to 52 from the previous month’s 52.7, as weakness in export markets offset stronger domestic new business resulting from supportive government policies and a general improvement in market conditions, reported Caixin.
Weaker growth in the services sector helped drag down the Caixin China Composite Output Index, which covers both manufacturers and service providers, to 50.6 in June from 51.5 in the previous month.
“Overall, China’s economy came under greater pressure in June,” said Zhong Zhengsheng, director of macroeconomic analysis at CEBM Group, an affiliate of Caixin Global. “The conflict between China and the US impacted business confidence rather heavily. Although its impact on exports hasn’t been fully reflected in the short run, the longer-term situation doesn’t look optimistic.”