China’s Caixin services PMI for June came in at 50.3, down from 55.7 predicted and 55.1 the previous month, indicating a severe downturn in the country’s services activity.
The Composite Output Index fell from 53.8 in May to 50.6 in June, indicating a slowing expansion in the services sector.
For the past 14 months, the most gradual increases in activity and new projects have been made.
As capacity pressures ease, the number of employees decreases.
Input cost and output charge inflation rates are both slowing.
Dr. Wang Zhe, Senior Economist at Caixin Insight Group, commented on the China General Services PMI (TM) data: “The latest measurement was in June, and it was the lowest since April 2020. In June, the services sector expanded for the 14th month in a row, but at a far slower pace than the previous month.”
“In the services sector, both supply and demand grew. In June, both the business activity and total new orders indicators were positive for the 14th month in a row, but both dipped to their lowest levels in 14 months. Covid-19’s recent return in the Pearl River Delta had an effect on the services industry. External demand improved little. Though the rate of increase was limited, the indicator of new export business rose into positive territory “he continued
The AUD bulls were unfazed by the disappointing Chinese Services PMI statistics, as the pair is still trading over 0.7500.
The price of the contract was last noted at 0.7517, down 0.13 percent on the day./n
