KURE - China service sector growth of 54.1 in July beats forecasts; composite PMI drops to 6-month low

2023-08-03 01:51:10 ET

• The Caixin China General Services PMI unexpectedly rose to 54.1 in July 2023 from June’s five-month low of 53.9, exceeding forecasts of 52.5,  pointed to the seventh straight month of expansion in services activity supported by a faster rise in new orders, which encouraged firms to expand their payroll numbers at the fastest pace in four months in the summer travel season.

• New orders growth accelerated, despite foreign demand expanding at a marginal pace that was the slowest for six months amid a sluggish global economic environment.

• The Caixin China General Composite PMI fell to 51.9 in July 2023 from 52.5 in June, marks the seventh straight month of growth in private sector activity but the softest pace since January, as the manufacturing sector contracted for the first time in three months while growth in the service economy sustained for the 7th successive month.

• New orders rose the least in six months, amid a divergent trend where service providers saw a stronger rise in sales while factory orders shrank for the first time since April.

• "At present, monetary policy only has a limited effect on boosting supply," said Dr. Wang Zhe, an economist at Caixin Insight Group. "An expansionary fiscal policy that targets demand should be prioritized.”

• ETFs: ( FXI ), ( KWEB ), ( CQQQ ), ( MCHI ), ( ASHR ), ( YINN ), ( TDF ), ( CHIQ ), ( GXC ), ( EWH ), ( KBA ), ( YANG ), ( CXSE ), ( CAF ), ( CWEB ), ( PGJ ), ( KURE ), ( CHIX ), ( CYB ).

• Now read: China's manufacturing shrinks for first time in 3 months to 49.2 in July

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