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.