Activity in China's services sector expanded modestly in July, a private survey showed, as new business orders recovered from a multi-year low in a rare sign of resilience.
The HSBC/Markit Purchasing Managers' Index (PMI) for the services industry stood at 51.3 in July, unchanged from June and just a whisker above a 20-month low of 51.1 struck in April.
But the show of strength was tempered by a fall in prices charged by companies, suggesting demand was still too weak for firms to raise prices, which hit a nine-month low in July.
Source: Reuters
The HSBC/Markit Purchasing Managers' Index (PMI) for the services industry stood at 51.3 in July, unchanged from June and just a whisker above a 20-month low of 51.1 struck in April.
But the show of strength was tempered by a fall in prices charged by companies, suggesting demand was still too weak for firms to raise prices, which hit a nine-month low in July.
China's economy is at risk of posting its weakest annual growth in over two decades this year as flagging foreign and domestic demand weigh on exports and factory production. A slowdown in investment has further dragged on growth.
"China's service sector has stabilized at a relatively low level of growth," said Qu Hongbin, an economist at HSBC.
"But profit margins continue to be squeezed. Without a sustained improvement in demand, services growth is likely to remain lackluster, putting downside pressures to employment growth."
China's economy is at risk of posting its weakest annual growth in over two decades this year as flagging foreign and domestic demand weigh on exports and factory production. A slowdown in investment has further dragged on growth.Source: Reuters
