A reading of China’s services sector expanded at a quick pace in July, a positive signal that was in sharp contrast to recent weak manufacturing data.
The Caixin China services purchasing managers index (PMI) for July rose to 53.8, well above the 50-mark separating contraction from growth and up from June’s 51.8; it was the highest reading since August 2014.
“Greater volumes of new business underpinned the latest expansion of business activity. Moreover, the rate of new order growth picked up to a solid pace that was the second-strongest in eight months,” the data release said. “Anecdotal evidence suggested that stronger underlying client demand and new customer wins boosted new orders.”