China’s Purchasing Manager Index for its services sector dropped to 57.0 in June from 61.9 in May, the China Federation of Logistics and Purchasing (CFLP) said on Sunday.
The index suggested China’s services sector has lost some steam in response to monetary policy tightening and weaker global demand, but still outperforms the vast manufacturing sector.
China’s manufacturing sector PMI in June hit a 28-month-low of 50.9, pointing to further slowdown in the world’s second largest economy.
‘New order index fell quite sharp this month, especially for the transport service industry, and it showed that business purchasing activities are slowing,’ Cai Jin, a CFLP vice president, said in a statement.
The sub-index of new orders fell to 53.5 in June from 53.8 in May. But the construction sector was supported by the government’s plan to build affordable housing across the country.
The sub-index for input prices fell to 61.6 in June from 62 in May, pointing to easing inflationary pressures in the service sector.
Reuters