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- China’s services sector activity declines sharply in August - Markit/Caixin
China’s services sector activity declines sharply in August - Markit/Caixin
Markit/Caixin’s
survey revealed on Friday that the activity in the Chinese services sector declined
sharply in August, as growing coronavirus cases in Chana and abroad impacted
operations and demand.
The
Caixin/Markit services purchasing managers' index (PMI) came in at 46.7 last
month on a seasonally adjusted basis, down from the previous month's reading of
54.9. That marked the first contraction in services activity since April 2020.
The 50 mark divides contraction and expansion.
According
to the survey, the new orders recorded the first fall in 16 months, while employment
saw a decline for the second time in the past three months during August and the
amount of outstanding business registered a second successive monthly increase.
On the price front, input prices rose modestly overall, due mainly to higher staffing
costs and increased transport fees, while output prices fell in August,
following a solid gain in the previous month.
Caixin
China Composite PMI, which covers both manufacturing and services, fell from 53.1
in July to a four-month high of 47.2 in August, pointing to the first
contraction in private sector activity since April 2020.
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