China's service growth rate exceeds expectations

The Caixin China General Service Industry PMI for 2024/7 was 52.1, up from 51.2 in June, which was an 8-month low level, and exceeded market expectations of 51.4.

The rapid pace of increase in new orders, a continuous increase in export sales, and strong employment contributed, and the service industry experienced positive growth in the 19th month.

Sales of foreign-affiliated companies continued to increase, supported by growth in the tourism industry, although the expansion rate slowed for 11 consecutive months.

The number of employed people reached a high level for the first time in about a year after the decline in June.

On the price side, input prices rose due to rising material costs, labor costs, and transportation costs.

Meanwhile, the average sales price remained flat after rising for the past 5 months.

Finally, business confidence levels remained calm, the second lowest since 2020/3, as companies were cautiously optimistic that improvements in the market environment and business development efforts could support the growth of service activities over the next year.

Source: S&P Global