The Caixin Services Purchasing Managers’ Index dipped to 55.0 from a 15-month high of 55.5 in July,but remained well in expansionary territory. The indicator shows China’s services sector softened marginally in August.
“The service sector’s recovery from a widespread outbreak of Covid-19 earlier in the year continued in spite of new flare-ups,” Wang Zhe, senior economist at Caixin insight group was quoted as saying.
“The rare high temperatures and Covid outbreaks were the main factors weighing on the economy in August, but the resulting power shortages greatly restricted manufacturing production, whereas service providers remained largely unaffected. Total new business also expanded at a strong, albeit slightly softer, pace during August. There was evidence that the upturn continued to be led by domestic demand,” Wang added.
China’s economy will stabilize gradually with a package of policies implemented, according to Yang Yinkai, the deputy secretary general of National Development and Reform Commission.
