The China Caixin services purchasing managers’ index, a private gauge of service-sector activity, improved further in July, contrasting with its official counterpart.
The Caixin services PMI rose to 55.5 in July from 54.5 in June, Caixin Media Co. and research company S&P Global said Wednesday.
Service companies surveyed in the Caixin PMI reported a faster output expansion in July, which rose to a 15-month high as new orders, mainly from domestic clients, increased at a faster pace. Foreign demand, however, was curbed by Covid and fell modestly in July, Caixin and S&P Global said.
Despite improved output and market demand, service providers cut their staffing levels further last month. Input costs rose at a stronger pace in July while prices charged by service companies only increased slightly.
Service companies were highly optimistic in July as the degree of positive sentiment hit its highest level since November 2021, according to the survey. Business owners expect that Covid-19 will be contained as demand strengthens on the back of growth-driving government support.
The competing official nonmanufacturing PMI, issued by China’s statistics bureau on Sunday, weakened to 53.8 in July from June’s 54.7 reading due to renewed softness in the services sector.