China’s service sector growth slows to 51.2 in June – PMI report

China’s services sector growth slowed in June, with the Caixin/S&P Global services PMI falling to 51.2 from 54 in May. This represents the lowest reading since October 2023, but still indicates expansion for the 18th consecutive month.

The Composite Output Index was 52.8 in June, down from 54.1 in May, indicating continued expansion in Chinese business activity for an eighth consecutive month.

In June, new orders increased at a slower pace compared to the previous four months. Business sentiment declined to its lowest level in five years, and employment decreased in both manufacturing and service sectors.

Output price inflation eased, mainly due to slower increases in service sector charges, while manufacturing prices rose for the first time this year. Overall input cost inflation remained unchanged from May.

Attribution: PMI by S&P report