China's Caixin services PMI falls

The purchasing managers index (PMI), one of the most important indicators of services activity in China, pointed to a slower recovery in the sector. The Caixin services sector PMI fell from 57.1 points to 53.9 points in June. Despite this decline, the index remained above the 50-point threshold separating expansion from contraction for the sixth consecutive month. Caixin’s statement indicated a slower-than-expected recovery in the sector. Despite the slow expansion in activity, service providers increased hiring to increase production capacity. The index, which measures expectations from sub-indices, indicated that businesses in the sector remained optimistic about the outlook for the coming year. China’s official non-manufacturing composite PMI, which covers both services and construction activities, also fell from 55.6 points to 52.3 points in June.