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China's services sector growth hits 11-month high

  • Author:naky
  • Source:www.diecastingpartsupplier.com
  • Release on:2015-08-11
China's services sector growth hits 11-month high

China's services sector grew in July grew at its fastest pace - and to its highest level - in almost a year - as new business volumes picked up.

The Caixin/Markit services purchasing managers' index jumped to 53.8 last month from a reading of 51.8 in June. It was the biggest gain since a 4.1 point rise in August last year, and is also the highest level for the index since that month.

According to Caixin, the improvement in service sector activity was underpinned by an increase in new business volumes, and the rate of new order growth accelerated at the second-fastest pace in the past eight months.

“Anecdotal evidence suggested that stronger underlying client demand and new customer wins led to increased new work at service providers. In contrast, new work placed at manufacturers declined solidly in July, after a slight increase in June. As a result, new business at the composite level rose at a fractional pace that was the slowest in the current 15-month sequence of expansion.”

The composite reading, which combines the surveys for the services and manufacturing sectors, fell to 50.2 in July from 50.6 in June. On Monday, the final manufacturing PMI was revised lower to its lowest level in three years, to a reading of 47.8 in July from 49.4 in June, which weighed upon the combined result.

Here's another reasonably encouraging observation on the services result from Caixin:“Employment at service sector companies continued to increase in July, with a number of surveyed companies attributing growth to planned company expansions. Moreover, the rate of job creation picked up slightly since June. However, staff numbers continued to decline at manufacturing firms, albeit at a slower pace than in the previous month.”